ASDA’S co-owner has rejected claims the supermarket profiteered from the Ukraine war by ripping off drivers.
Mohsin Issa told MPs it was “absolutely not” true the supermarket used the world situation to cut prices slowly, known as “feathering”.
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It came after Ian Lavery MP asked the competitions watchdog if it had found evidence that Asda had used “inflation as a cover to reduce fuel prices slower and . . . the Ukraine war to gouge their customers”.
Dan Turnbull, of the Competition and Markets Authority, replied that during its probe into the fuel market Asda’s own evidence showed that the volatile energy markets had “extended the opportunity to engage in feathering prices”.
Mr Issa, who with his brother Zuber bought Asda, the UK’s third biggest supermarket, for £6.8billion in 2020, was quizzed by business select committee MPs.
He ducked questions on whether Asda had upped fuel profit margins since their takeover.
More than six times during a 90-minute session, he said Asda’s position as a price leader on petrol and diesel “remains our strategy”.
Yet committee chair, Darren Jones, raised evidence from a whistleblower that Asda’s price gap between its rivals had narrowed from 1p a litre to just 0.1p a litre on average.
Mr Turnbull said the CMA’s probe found that between 2021 and 2023 Asda increased its internal fuel margin by three times its 2019 level, when US retailer Walmart owned Asda.
In a testy exchange, Mr Issa, who grew up in Blackburn, said he did not know why Asda had been registered in Jersey, a low-tax jurisdiction, since the Issa brothers bought the business.
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OUI NEED POWER
BRITAIN may end up exporting more energy to France as Europe’s heatwave has impacted the country’s nuclear power stations because the rivers are too hot.
EDF usually uses water from the Rhone to cool its nuclear reactors but rules on river temps mean it has become too hot to use.
EDF said that it will have to curb its nuclear output at a handful of its power stations.
And a likely surge in demand for air conditioning means the French will need to import in more energy.
Frasers nab Asos
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MIKE Ashley’s Frasers Group has increased its grip on struggling online fashion retailer Asos .
It has upped its stake from ten per cent to 13 per cent.
Asos is worth £460million but has fallen in value by two-thirds over the past year.
Mr Ashley, below, who made his fortune building Sports Direct, also has a five per cent stake in Boohoo, a nine per cent stake in Currys and a 19 per cent stake in its online rival AO World.
He has a 37 per cent stake in luxury handbag brand Mulberry.
BRIGHTER SPARK
A NEW supplier has entered the energy market for the first time since 30 companies went bust.
Fuse Energy, founded by two ex-employees of the banking app Revolut, is offering customers a brand-new electricity tariff.
It is the first sign of life in the market after costs soared over the past 18 months — notably Bulb Energy.
Fuse’s deal would cost the average household £1,011.69 a year due to a lower standing charge.
A typical customer would pay £54.86 less.
Foodies flocking to Wagas
SLURPING noodle fans are still flocking to Wagamama — despite the cost of living crisis, the company’s owner said.
The Restaurant Group said sales had risen by 5 per cent since the start of the year.
And more customers are opting to dine in the restaurant rather than order takeaways.
But its Frankie & Benny’S business continues to struggle — with sales sliding by 4 per cent over the period.
The company, under intense pressure from a trio of activist investors, said it is working with independent advisers to consider potential disposals — including of its Frankie & Benny’s chain.
TRG said that it was considering its options to reduce debt.
But it is mindful that any sale has to reflect current trading and long-term prospects.
BANKING HUB FAIL
The Financial Conduct Authority has admitted that banking “hubs” have been a failure so far as only six cash hubs have been opened while thousands of bank branches have closed.
FCA bosses Nikhil Rathi and Ashley Alder were asked about how the watchdog was ensuring people were not left without bank services or access to cash if all the bank branches in their towns were shut.
Mr Rathi also said that banks had “not been fast enough” at passing on higher interest rates to savings customers.
A new consumer duty will come into force soon which Mr Rathi said would result in banks improving their savings rates.
Bills to rise as firm’s reward
SEVERN Trent could hike bills for 5million customers by another £50m over the next few years as the water regulator says it has beaten performance targets.
The FTSE 100 water firm will get the huge award as part of Ofwat’s incentive scheme. Water companies that fail performance targets get penalties or are made to give compensation to customers, as Thames Water had to do.
Severn Trent said it was on track to meet City forecasts.
Boss Liv Garfield also said there were no plans for a hosepipe ban, with reservoirs three-quarters full.
