Asda deal risks higher petrol pump prices, say regulators

DRIVERS are at risk of higher prices at the pump if Asda’s £600m swoop on Co-op’s petrol stations is given the green light, regulators have warned.

The UK competition watchdog threatened to kick off an in-depth investigation into Asda’s takeover of the 132 Co-op forecourts over concerns it could push prices for fuel and groceries higher in 13 parts of the UK. The case centres around the locations where there is already an Asda supermarket near one of the forecourts it is buying.

Colin Raftery, senior director of mergers at the Competition and Markets Authority (CMA, said the vast majority of sites would not mean less choice for drivers. However, he added: “There’s a risk that customers could face higher prices or worse services in a small number of areas where Asda would face insufficient competition in either groceries or fuel after the deal goes through.”

Asda had sealed the deal for the petrol stations last October as part of a wider push into convenience stores on high streets.

However, it was met with concern by campaigners at Fairfueluk who said it would result in prices at the pump “persisting at needless rip-off highs”.

Zuber Issa, one of the billionaire Issa brothers who own Asda as well as forecourt giant EG Group, responded by saying EG was looking to “outperform the wider market” on prices and that the cost of living crisis was “front of mind”.

The CMA has given Asda five days to offer potential solutions to ease its concerns of higher prices in the 13 areas, and then will decide whether to refer the deal to a phase two investigation.

Mohsin Issa, co-owner of Asda, said the company would work constructively with the CMA on the findings.