British supermarket group Asda's fuel pricing strategy has not changed since Mohsin and Zuber Issa took over the supermarket group in 2021, Mohsin Issa told lawmakers on Wednesday.
"The pricing strategy has not changed, we remain the price leader in fuel," he said in evidence to the lower house of parliament's Business and Trade Committee.
Asda is Britain's third largest supermarket group after market leader Tesco (TSCO.L) and Sainsbury's (SBRY.L)
Issa had been called by the committee to clarify a statement made by his chief commercial officer, Kris Comerford, at a June 27 hearing that Asda's fuel pricing strategy has "not changed over many years".
The committee said this appeared at odds with the findings of the competition regulator's market study of the supply of road fuel, published on July 3.
The Competition and Markets Authority (CMA) blamed weakening competition on a decision by Asda and Morrisons, the traditional price-leaders on fuel, to compete less hard so as to achieve higher margins, and a lack of competitive response to this by others, including Tesco (TSCO.L) and Sainsbury's (SBRY.L).
Issa was repeatedly asked by lawmakers if Asda had increased its fuel margin target but declined to answer.
He said fuel and food should be considered as a single business, not separately as the committee had done, and pointed out that Asda's profit fell 24% in 2022.
