Drivers paid higher fuel prices after supermarkets increased margins – watchdog
Increased supermarket profit margins led to drivers paying an extra 6p per litre for fuel last year, an investigation has found.
Asda has also been fined £60,000 for a failure to provide information when required, the Competition and Markets Authority (CMA) added.
It comes in the regulator’s final report in its year-long investigation into the fuel market.
Asda was issued with two £30,000 fines as it failed to respond completely to a compulsory request for information, the CMA said, and sent a representative to attend a mandatory interview who wasn’t able to provide evidence on topics they had advance notice of.
As part of the investigation, the watchdog examined whether there was “any failure in competition” which was leaving consumers paying higher fuel prices than they should be.
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It determined that competition has “weakened” as Asda and Morrisons decided to increase the amount of money it makes on fuel and Sainsbury’s and Tesco have priced by comparison to local competitors rather than responding to cost movements in the market.
There was, however, no evidence to suggest that there has been “cartel behaviour”, the regulator said, and there are no plans to open an enforcement case against supermarkets.
Instead, the CMA has said there should be a new, legally mandated system, requiring fuel providers to publish live data on fuel charges. This would enable consumers to see petrol station costs in real time on their phones or satnavs.
The government has said it would support this measure and change the law to force retailers to provide up to date price information.
A new fuel monitoring body has also been proposed by the CMA. Such a body would establish the fuel finder scheme.
Analysis: How changes of supermarket ownership helped fuel pump price charges
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‘Motorists are not getting best deal’
The CMA had previously said supermarket fuel prices were roughly 5p more expensive per litre in 2022 than pre-pandemic levels and that factors beyond the invasion of Ukraine have impacted the price customers are paying at the pumps and weak competition has helped drive increases.
On Monday morning, the Petrol Retailers Association told Sky News that independent forecourt operators have struggled to be competitive against supermarkets.
In March of this year, the CMA identified 13 areas of concern as part of Asda‘s plan to buy Co-op petrol stations and requested the supermarket buyer take remedial action.
A similar investigation into competition and food prices is being done by the CMA.
Chancellor Jeremy Hunt last week met with regulators, including the CMA, in an effort to push suppliers to reduce prices.
An Asda spokesperson said, “Despite record inflation, we have carefully managed our business to ensure Asda was the cheapest traditional supermarket for both groceries and fuel throughout the period reviewed by the CMA and this position is unchanged.
“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.”
A Morrisons spokesperson said it is “extremely competitive” on fuel pricing. “Although margins have increased, they remain very low.”
“The calculation of margin on fuel does not include the costs of running a fuel business – such as energy, rents and payroll – which have substantially increased through the cost of living crisis while volumes have declined since COVID,” the spokesperson said.
“The modest increase in the profitability in fuel has been an important part of our ability to invest in holding and lowering prices in store.”
UK
Starmer urges anyone with information on Epstein case to come forward – after Andrew misses Congress deadline
Sir Keir Starmer has urged anyone with information on the Jeffrey Epstein case to come forward after Andrew Mountbatten Windsor missed the deadline to appear in front of US Congress.
US legislators have criticised Andrew for what they describe as “silence” amid their probe into Epstein after he failed to respond to their request for an interview.
When asked about Andrew missing the deadline and whether the former prince should help the case in any way he can, Sir Keir said on his way to the G20 summit in South Africa: “I don’t comment on this particular case.”
He added that “a general principle I’ve held for a very long time is that anybody who has got relevant information in relation to these kind of cases should give that evidence to those that need it”.
Andrew is not legally obliged to talk to Congress and has always vigorously denied any wrongdoing.
Sir Keir Starmer spoke to reporters on his way to the G20 in South Africa. Pic: Reuters
It comes as Marjorie Taylor Greene, a loyal supporter-turned-critic of US President Donald Trump, said on Friday she is resigning from Congress in January.
Ms Greene’s resignation followed a public falling-out with Mr Trump in recent months, as the congresswoman criticised him for his stance on files related to Epstein, as well as on foreign policy and healthcare.
Members of the House Oversight Committee had requested a “transcribed interview” with Andrew in connection with his “long-standing friendship” with Epstein, the paedophile financier who took his own life in a New York prison in 2019 while awaiting trial on sex trafficking and conspiracy charges.
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Releasing the Epstein files: How we got here
But after saying they had not heard back, Democrats Robert Garcia and Suhas Subramanyam accused Andrew of hiding.
Their statement read: “Andrew Mountbatten Windsor’s silence in the face of the Oversight Democrat’s demand for testimony speaks volumes.
“The documents we’ve reviewed, along with public records and Virginia Roberts Giuffre’s testimony, raise serious questions he must answer, yet he continues to hide.
“Our work will move forward with or without him, and we will hold anyone who was involved in these crimes accountable, no matter their wealth, status, or political party. We will get justice for the survivors.”
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The new Epstein files: The key takeaways
It follows Andrew being stripped of his prince and Duke of York titles earlier this month.
He had previously agreed to stop using his titles, but had expected to remain a prince and retain his dukedom, ahead of the publication of the memoirs of the late Ms Giuffre, who had accused him of sexually assaulting her when she was a teenager – an accusation he denies.
A 13-year-old girl has been arrested on suspicion of murdering a woman in Swindon.
Police said the teenager was detained following an incident in Baydon Close, Moredon, in the Wiltshire town on Friday evening.
Officers responded to reports of disorder inside a house. When they arrived, a woman in her 50s living at the address was found to be not breathing. She was declared dead at the scene.
There were no other reported injuries.
Forensic officers are at the scene to collect evidence
Detective Inspector Darren Ambrose, from Wiltshire Police’s major crime investigation team, said: “This is a serious incident in which a woman has sadly died.
“We have set up a cordon at the address while an investigation is carried out.
“I can confirm that we have arrested a teenage girl in connection with this incident and we are not looking for anyone else.”
Police have asked people not to speculate about the incident online as this could prejudice the case.
A police statement read: “Residents can expect to see an increased police presence in the area while we continue carrying out our enquiries into the woman’s death.
“The suspect remains in custody at this time.”
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Police said anyone with concerns should speak with their local neighbourhood policing team, either by emailing or approaching officers in person.
Rail fares are to be frozen for the first time in 30 years, the government has announced.
Ministers promised that millions of rail travellers will save hundreds of pounds on regulated fares, including season tickets and peak and off-peak returns between major cities.
The fare freeze applies to England and services run by English train operators.
People commuting to work three days a week using flexi-season tickets will save £315 a year travelling from Milton Keynes to London, £173 travelling from Woking to London and £57 from Bradford to Leeds, the government said.
The changes are part of Labour’s plans to rebuild a publicly owned Great British Railways. Other planned changes include tap in-tap out and digital ticketing, as well as investing in superfast Wi-Fi.
The freeze applies to regulated fares, including season tickets and peak and off-peak returns. Pic: iStock
Chancellor Rachel Reeves said the government was introducing a freeze on rail fares for the first time in 30 years, which “will ease the pressure on household finances and make travelling to work, school or to visit friends and family that bit easier”.
“We all want to see cheaper rail travel, so we’re freezing fares to help millions of passengers save money,” Transport Secretary Heidi Alexander said.
“Commuters on more expensive routes will save more than £300 per year, meaning they keep more of their hard-earned cash.”
Rail unions and passenger groups welcomed the move, praising how it will make travel more affordable for passengers and promote more sustainable travel alternatives.
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Eddie Dempsey, general secretary of the Rail, Maritime and Transport union, said: “More affordable fares will encourage greater use of public transport, supporting jobs, giving a shot in the arm to local economies and helping to improve the environment.”
TUC general secretary Paul Nowak said the rail fare freeze “will be a huge relief to working people”.
“This is the right decision, at the right time, to help passengers be able to afford to make that journey they need to take, and to help grow our railway in this country, because the railway is Britain’s green alternative – taking cars and lorries off our congested roads and moving people and goods safely around our country in an environmentally-friendly way,” Mick Whelan, general secretary of the train drivers union Aslef, said.
The Tories welcomed the move but said the government was “late to the platform”.
Shadow transport secretary Richard Holden said: “In government, the Conservatives kept fares on the right track with below-inflation rises and consistently called for no further hikes to protect hard-working commuters.”
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