CMA issues £60,000 fine to Asda over fuel price probe failure

The Competitions and Market Authority (CMA) has fined Asda £60,000 for failing to provide information for its fuel pricing probe when required.

Asda received two fines each of £30,000, for sending a representative to attend a compulsory CMA interview who was not equipped to provide evidence on certain topics and for failing to respond completely to a compulsory written request for information.

The news comes after the CMA published its in-depth study into the road fuel market which found a weakening of competition in retail since 2019.

According to the report, 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.

It also found that Asda’s fuel margin target in 2023 was more than three times what it had been for 2019, while Morrisons doubled their margin target in the same period.

In response to the findings, CMA stated that “competition has weakened” and has called for action to drive down fuel prices.

Sarah Cardell, chief executive of the CMA, 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. This is why we are recommending the UK government legislate for a new fuel finder scheme which would make it compulsory for retailers to make their prices available in real time. This would end the need to drive round and look at the prices displayed on the forecourt and would ideally enable live price data on satnavs and map apps.”

An Asda spokesperson added: “The CMA’s comprehensive road fuel market review recognised Asda as the price leader and confirmed the presence of an Asda petrol station in a local area keeps prices down for all motorists. 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. As the price leader in the supermarket fuel sector, we welcome any initiative that makes it easier for motorists to compare fuel prices, such as an app or other technology-based solutions.