CMA Finds Asda’s Margin Target Tripled in 2023, Morrisons Doubled in the Same Period

  • CMA fines Asda £60,000 for failing to provide information during a fuel pricing probe
  • Asda’s fuel margin target in 2023 was three times higher than in 2019
  • Morrisons doubled their margin target in the same period
  • Drivers pay an extra 6p per litre due to increased margins of major supermarkets
  • CMA recommends a new fuel finder scheme for real-time price data on satnavs and map apps

The Competitions and Market Authority (CMA) has fined Asda £60,000 for failing to provide information during a fuel pricing investigation. The retailer received two separate £30,000 fines for not responding completely to a compulsory written request for information and sending an uninformed representative to a CMA interview. The CMA’s road fuel market study revealed weakening competition since 2019, with both Asda and Morrisons increasing their fuel margins, causing drivers to pay an additional 6p per litre in 2022. The CMA suggests legislating for a new fuel finder scheme that would require retailers to share real-time prices on satnavs and map apps. Asda responded by acknowledging the need for easier price comparison methods, such as apps, to benefit consumers.

Factuality Level: 8
Factuality Justification: The article provides accurate and objective information about the CMA’s fine on Asda, the findings of their study on road fuel market competition, and Asda’s response. It includes relevant details about the fines, the impact on drivers, and the proposed solution to improve price comparison for fuel retailers.
Noise Level: 3
Noise Justification: The article provides relevant information about the CMA’s fine on Asda and its impact on competition in the road fuel market. It also includes quotes from the CMA and Asda representatives, offering different perspectives on the issue. The article stays on topic and supports its claims with evidence from the CMA report. However, it could provide more analysis or discussion of potential solutions beyond the proposed fuel finder scheme.
Financial Relevance: Yes
Financial Markets Impacted: Supermarkets and fuel retailers
Financial Rating Justification: The article discusses fines imposed on Asda for not providing information to the CMA, the impact of competition in the road fuel market, and calls for action to drive down fuel prices. This affects supermarkets and fuel retailers, which are financial entities, making it financially relevant.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: Minor
Extreme Rating Justification: There is no extreme event mentioned in the article. The fines imposed on Asda by the CMA are minor in nature and do not have significant impact on society or economy.

Reported publicly: www.retailsector.co.uk