THE big four supermarkets ripped off hard-pressed drivers by nearly £1billion by charging 6p a litre too much for fuel, competition watchdogs have found.
Asda, Tesco, Sainsbury’s and Morrisons were named as ministers vowed yesterday to create a new PumpWatch fuel price checker to drive down bills.
The big four supermarkets ripped off hard-pressed drivers by nearly £1billion, competition watchdogs have found.
Asda and Morrisons were said to have “significantly increased” the amount of profit they made from drivers since private equity takeovers.
Margins at Asda were three times higher than in 2019, while Morrisons had doubled in that time, the Competition and Markets Authority found.
Overall, the supermarkets’ annual fuel margin rose from 4.6p a litre in 2019 to 10.8p last year as they clung on to profits rather than pass on falling oil prices to motorists.
By charging higher prices drivers had to pay about £900million more in 2022 at the pumps than they should.
It is the equivalent of £75million a month.
Under the PumpWatch scheme, drivers will be helped with apps and websites to find the cheapest prices close to their home — with ministers consulting on the plans over the autumn.
In the meantime, the CMA will introduce its own price-checking website by the end of the summer while waiting for the Government to pass laws.
HOAR has been at the forefront in helping drivers since 2011 with the Keep It Down campaign saving £24billion in fuel duty.
We have led the charge for a PumpWatch system.
Energy Minister Grant Shapps last night said: “HOAR has been in the driving seat in helping expose rip-off retailers and holding them to account for their outrageous overcharging at the pumps.”
Chancellor Jeremy Hunt said: “Consumers need to be treated fairly and so we’re empowering drivers to find the best prices possible for their fuel by taking swift steps following the CMA’s recommendations.”
Fuel price campaigner Howard Cox, of FairFuelUK, said: “PumpWatch will be welcomed by motorists.
“But it must have teeth and not be another costly quango.”
The CMA’s review was launched after a surge in prices when Russia invaded Ukraine.
CMA chief executive Sarah Cardell said: “Competition at the pump is not working as well as it should be.
“We need to reignite competition among fuel retailers.”
Asda said it was the cheapest traditional supermarket for both groceries and fuel.
Morrisons insisted its margins remained very low.
Tesco added it was committed to providing competitively priced fuel.
‘PROFITEER’ BANKS RAP
BRITAIN’S biggest banks have been accused of “blatant profiteering” for not passing on higher interest rates to savers.
MPs on the Treasury select committee have written to Barclays, Lloyds, HSBC and NatWest and the financial watchdog the FCA to put pressure on them to boost rates for their customers.
The Bank of England has raised interest rates to five per cent but the largest banks are offering rates of between just 0.95 per cent and 1.75 per cent on instant access savings accounts.
Meanwhile, banks have made huge profits by charging higher rates on loans and mortgages.
The committee’s Dame Angela Eagle said: “This blatant profiteering has been shocking.”
The FCA’s consumer duty ensuring banks offer “fair value” comes into force this month.
ENERGY FIX TARIFF PAIN
HUNDREDS of thousands of households are being charged more than the energy regulator’s price cap after firms tied them into fixing at a higher rate.
Today Ofgem will warn suppliers to “act responsibly” and not put profits and dividends above looking after customers.
Brits should be benefitting from a £426 drop in their energy bills after Ofgem lowered the price cap to £2,074 from July 1.
But suppliers have sold 300 tariffs which are above the price cap, according to new findings.
Simon Francis, coordinator of the End Fuel Poverty Coalition, said: “This news will send shockwaves through households who thought they were doing the right thing by fixing their energy tariffs.
“It turns out they’ve been taken for a ride by energy firms.”
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https://hellofaread.com/money/major-update-on-greggs-shops-opening-24-hours-is-one-coming-near-you/
