Asda took advantage of drivers as it ‘used Russia’s invasion of Ukraine to increase fuel prices’, watchdogs say

Supermarket giant Asda took advantage of drivers amid fluctuating fuel prices caused by Russia’s invasion of Ukraine, according to official watchdogs.

The Competition and Markets Authority, giving evidence to MPs yesterday in the all-party Business and Trade Committee, found that motorists were effectively charged an average of 6p per liter for fuel in 2022, totaling £900m.

He identified a particular scam on diesel, where the apparent surcharge rose as high as 13p a liter and continued until this year.

Dan Turnbull, CMA’s director of markets, said a change in fuel pricing policy at Asda, tripling its profit margin, was the apparent scam.

Significantly, Asda failed to cooperate with the CMA’s price investigation and was hit with two £30,000 fines as a result.

The picture shows EG Group founders Mohsin (right) and Zuber Issa (left) in Blackburn on November 13, 2019.

Turnbull criticized Asda saying: “We found that between 2021 and 2023 they significantly increased their internal fuel margin targets in pence per liter.”

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

‘Asda told us that they saw an opportunity when the wholesale price fell to pass through reductions in the retail price more slowly than they previously would have.

‘They said that they applied that in more than 100 service stations where they did not have direct competition from another supermarket.

“They also said there was a bigger opportunity to do that with diesel in 2023 because of market volatility.”

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

The CMA will make an announcement today about supermarket prices and whether stores did not provide clear information to shoppers.