The Competition and Markets Authority (CMA) has fined Asda £60,000 over failing to provide information for its fuel pricing probe.
The supermarket was handed two fines, each valued at £30,000, for “failing to respond to a compulsory written request for information” and for sending a representative to a CMA meeting who was not equipped to provide appropriate evidence.
The watchdog published its findings on Monday from its year-long investigation into whether “any failure in competition” was causing consumers to pay higher fuel prices than they should be.
The report found that both Asda and Morrisons had “each made the decision to target higher margins” on fuel sales last year, which has contributed to drivers paying an extra 6p per litre for fuel in 2022.
Subscribe to Retail Gazette for free
Sign up here to get the latest news straight into your inbox each morning
It said Asda’s fuel margin target in 2023 was more than three times what it was in 2019, while Morrisons had doubled its target margin over the same period.
The report also found that Sainsbury’s and Tesco “did not respond in the way you would expect in a competitive market and instead raised their prices in line with these changes”.
The watchdog said this “indicated that competition has weakened” and has called for government legislation to help drive down fuel prices.
CMA chief executive Sarah Cardell said: “Competition at the pump is not working as well as it should be and something needs to change swiftly to address this.
“Drivers buying fuel at supermarkets in 2022 have paid around 6 pence per litre more than they would have done otherwise, due to the four major supermarkets increasing their margins.
“This will have had a greater impact on vulnerable people, particularly those in areas with less choice of fuel stations.
“We need to reignite competition among fuel retailers and that means two things. It needs to be easier for drivers to compare up to date prices so retailers have to compete harder for their business.”
In response to the CMA’s fines, an Asda spokesperson said: “The penalty notices relate to two individual alleged technical breaches in the way information was shared with the CMA over a 12-month period, during which time a significant number of documents were shared with the CMA to aid their study and we engaged fulsomely with their enquiries.”
Click here to sign up to Retail Gazette‘s free daily email newsletter
5 Comments. Leave new
The fine is a pittance compared to Asda’s blatant profiteering. Not a penny of my money will ever again be spent at Asda.
Asda never willingly comply with anything unless its in there own best intrest and lining their pockets never mind the colleauge
the government should levy windfall taxes on Asda and Morrisons which would make them sit up and take notice. they may then drop their prices and in the long run lower inflation
Can’t Asda realise that it’s glid response is an insult to all its customers? At this moment in time when ALL families are suffering financial hardship we find that our ‘friendly’ Asda store, one that’s meant to ‘care’ for us, has been profiteering to the tune of 6p a litre on fuel. And, making underhanded deals with its competitors to make sure they’re driving home the misery to as many people as possible. Shame on you Asda! A caring store you ain’t.
Its not just fuel these supermarkets are cartels and need investigation