Asda took advantage of drivers as it ‘used Russian invasion of Ukraine to bump up fuel prices’, watchdogs say

Supermarket giant Asda took advantage of drivers amid fluctuating fuel prices due to the Russian invasion of Ukraine, according to official watchdogs.

The Competition and Markets Authority, testifying yesterday to MPs on the all-party Business and Trade Committee, found that motorists were actually overpaying an average of 6 pence a liter by 2022, equating to £900 million.

It identified a particular rip-off on diesel, with the apparent overcharge rising to as much as 13 pence per liter and continuing this year.

Dan Turnbull, CMA market director, said a change in fuel pricing policy at Asda – a tripling of profit margin – was the apparent rip-off.

Significantly, Asda failed to cooperate with the CMA’s investigation into pricing and as a result has been fined two £30,000.

Photo shows EG Group founders Mohsin (right) and Zuber Issa (left) in Blackburn 13 Nov 2019

Mr Turnbull criticized Asda saying: ‘We found that between 2021 and 2023 they have significantly increased their internal fuel margin targets on a pence-per-litre basis.

And by 2023, the targets for pence per liter were three times what they were in 2019.

“Asda told us they saw an opportunity when the wholesale price fell to implement sales price cuts more slowly than they would have done before.

‘They said they applied that in more than 100 gas stations where they had no direct competition from another supermarket.

“They also said there was a higher chance of doing that on diesel in 2023 because of market volatility.”

But Asda co-owner Mohsin Issa, who was asked by MPs whether his company had taken advantage of the war in Ukraine, said: “Absolutely not.”

The CMA will make an announcement today about supermarket pricing and whether stores have failed to provide clear information to shoppers.