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Бизнес

Billionaire owner Asda sued by lawmakers over gas bills

Mr. Issa and his brother Zuber bought the supermarket in 2021. Photo: John Super. will appear before MPs amid a growing dispute over gasoline prices.

Mohsin Issa was asked to appear before the Committee on Business and Trade later this month to clarify statements made by a fellow Asda executive.

This comes after a competition watchdog found that Asda, Morrisons, Tesco and Sainsbury drivers inflated prices by £900m in 2022 alone. be for fuel.

Asda was specifically cited by the Competition and Markets Authority (CMA), which said the grocer's fuel profit margin target had tripled since 2019 and fined him £60,000 for that it did not provide pricing information quickly enough.

Mr. Issa and his brother Zuber bought the grocery store in 2021.

0407 Average price per liter of fuel

Mohsin Issa, co-owner of Asda, said: “We have actively and openly engaged with the Business and Trade Committee on food and fuel price inflation. We are disappointed that the committee believes there are discrepancies in our evidence and have provided them with a detailed response to their letter requesting further interviews.

“In terms of fuel, we remain firmly convinced that our strategy is to offer the best value for money for customers at gas stations — CMA's fuel market research confirms that we continue to be so.

“While we cannot answer questions about how the market as a whole is performing, I am pleased to use the previously agreed time to meet directly with Mr. Jones for an open discussion, where I will be happy to reaffirm our strategy and commitment. . Asda has been and will continue to be a consumer advocate and a respected employer of thousands of valued colleagues.”

Labor MP Darren Jones, chairman of the business committee, wrote to Mr Issa to say the remark was «inconsistent» with the CMA's findings.

This was because individual figures indicated that motorists were hurt even more last month, even though wholesale fuel prices were at a level where gas station prices should fall further.< /p>

Gasoline prices rose in June for the first time in eight months, according to RAC Fuel Watch. RAC fuel spokesman Simon Williams said this was «solely because retailers are charging more profit per liter than before.»

Mr Issa was asked to report on July 19, although he and Asda have not confirmed whether he would attend. Representatives have been contacted for comment.

Witnesses may be forced to appear before Department committees if they refuse to do so.

Usually an informal request is issued. If this is refused, a formal challenge can be filed, theoretically backed up by the threat of a fine and imprisonment, although these penalties have not been used since the 1800s. Most of the witnesses are voluntarily present.

Gasoline and diesel prices

The Issa brothers, who also own the gas station empire EG Group, have largely stayed out of the media spotlight since they acquired Asda along with a private investment firm TDR Capital in a £6.8bn deal.

In response to CMA's findings, an Asda spokesperson said earlier this week: confirmed the presence of an Asda gas station. in the local area is lowering prices for all motorists.

«Despite record inflation, we carefully managed our business to ensure that Asda was the cheapest traditional supermarket for both groceries and fuel during the period, verified CMA, and this position is unchanged.

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