Business news in brief
Drivers being ‘taken advantage’ of by supermarkets, says RAC
Supermarkets are “taking advantage” of drivers by charging “far higher” fuel prices than they should be, the RAC said. It accused Britain’s biggest fuel retailers of refusing to lower their pump prices despite a drop in wholesale costs and said supermarkets’ profit margins are around 15p per litre for petrol and diesel. This means customers are being charged an “unnecessarily high” average price of 161.0p per litre for petrol and 184.4p for diesel.
This is only 2p per litre lower than the average for all UK forecourts. Supermarkets normally charge around 3.5p per litre less than the UK average.
RAC fuel spokesperson Simon Williams said: “The supermarkets dominate UK fuel retailing, primarily because they have traditionally sold petrol and diesel at lower prices due to the large volumes they sell. Sadly there is now a remarkable lack of competition among the four main players, which means prices are far higher than they should be.” PA
FTX crypto collapse shows need for regulation, says Bank chief
The collapse of cryptocurrency platform FTX has revealed the need for tighter regulations for crypto before it gets too big, the deputy governor of the Bank of England Sir Jon Cunliffe has warned. The cryptocurrency exchange filed for bankruptcy protection earlier this month as chief executive officer and founder Sam Bankman-Fried resigned. FTX has so far said it owes its 50 biggest creditors nearly £2.6bn. Sir Jon told an audience at a Warwick Business School event yesterday that the collapse will not threaten the stability of the financial system, but there is an increased need for regulation.
“While the crypto world ... is not at present large enough or interconnected enough with mainstream finance to threaten the stability of the financial system, its links with mainstream finance have been developing rapidly,” he said. “We should not wait until it is large and connected to develop the regulatory frameworks necessary to prevent a crypto shock that could have a much greater destabilising impact.” PA
John Lewis boss says shoppers budgeting
The chair of the John Lewis Partnership has said that consumers are starting to budget and are more conscious of spending, despite being eager to celebrate the first “normal” Christmas in three years. Dame Sharon White told a panel debate at the Confederation of British Industry (CBI) annual conference that
there were signs of shoppers changing their habits as a result of cost of living pressures. She told the CBI: “People are sticking more with own-brand value ranges and buying fewer branded products. Customers are also shopping a bit less online and are going more into stores in order to enjoy that shopping trip experience.” PA
Compass finds its way to a tripling of profits at £1.5bn
Catering giant Compass has revealed that profits almost tripled over the past year after its recovery surpassed expectations. The world’s largest food services provider said it reported record new business growth as demand for business and sports catering rebounded following the impact of the pandemic. Revenues surged by 42.5 per cent to £25.5bn for the year to 30 September, compared with the same period last year. As a result, statutory pre-tax profits leapt to £1.5bn from £545m a year earlier.
Compass said it also benefited from lower exceptional costs after the firm was affected by £157m of Covid-19-related “resizing costs” in the previous year. Meanwhile, underlying operating profits were 87.5 per cent higher at £1.59bn for the year. Compass told investors that underlying operating profits are expected to lift by around 20 per cent in 2023 as the new outsourcing market “remains buoyant”. PA
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