Asda co-owner Mohsin Issa will face questions from British lawmakers as they look to clarify comments made by one of his executives about the grocer‘s fuel pricing strategy at a previous hearing.
Reuters reports that the lower house of parliament’s Business and Trade Committee is concerned about apparent discrepancies between statements made in evidence on June 27 by chief commercial officer Kris Comerford, and the findings by Britain’s competition regulator in its market study of the supply of road fuel.
The CMA said that in 2022, UK drivers who bought fuel at supermarkets paid around 6 pence per litre more than they would have done otherwise due to the traditional ‘big four’ supermarkets upping their margins.
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The competition watchdog blamed the weakening competition on a decision by Asda and Morrisons, the traditional price-leaders on fuel, to compete less hard so as to achieve higher margins, and a lack of competitive response to this by others.
But Comerford told the committee Asda’s fuel pricing strategy had “not changed over many years”.
In a letter to the committee, Issa said Comerford had correctly stated Asda’s strategic position – to be the best value fuel retailer in the UK.
He also said fuel and food should be considered as a single business, not separately as the committee had done.
The committee is also seeking clarification on Comerford’s denial that Asda is employing so-called fire and rehire tactics.
CMA chief executive Sarah Cardell will appear before Issa to discuss details of its market study of the road fuel market.
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4 Comments. Leave new
Food and fuel should not be considered collectively. They are very distinct commodities. Completion in retail fuel is essential. It is beginning to feel as if the brothers are try to position themselves as the price controllers of essential commodities, food and fuel.
I question why only supermarkets have been targeted, locally Esso, BP and other often price higher than supermarkets. Seems like another distraction while the giant gas and electricity companies are getting away with daylight robbery as well as the billions £ allegedly fraudulently claimed through government COVID contract to friends and family, plus the Thamas water scandal, a company that should be seized not bailed out. “Cost of Greed Crisis all round”
We have two asdas store with in a mile and a half of each other. Difference in price for a ltr is five pence. Shows how much they rip off motorists. Even food shopping is a rip off in the difference in both stores
Where I live, ASDA & Morrisons are certainly working together. Since the fuel prices went mad, my 2 local supermarkets have been taking it in turns to be the cheapest. One day, ASDA is a penny per litre cheaper than Morrisons, then about 2 weeks later, ASDA put theirs up a penny and miraculously Morrisons come down a penny so they are cheaper. This has been happening consistently for months and they think the public are too stupid to notice.