Supermarkets investigated over food and fuel prices

Supermarkets are being investigated by the contention watchdog implicit rising nutrient and substance prices.

The Competition and Markets Authority (CMA) said it would look astatine whether a "failure successful competition" meant customers were overpaying.

Supermarkets said they were moving to support nutrient prices "as debased arsenic possible".

But an probe into the substance market, which has already started, has recovered immoderate supermarkets person accrued margins connected petrol and diesel.

The CMA said grounds suggested astatine slightest 1 supermarket had acceptable a higher people for its borderline connected substance prices successful 2022, which could person led to rivals pursuing suit and raising prices too.

The British Retail Consortium (BRC), which represents supermarkets, did not remark connected the CMA's substance terms findings. The BBC has contacted supermarkets individually for comment.

Andrew Opie, manager of nutrient and sustainability astatine the BRC, said supermarkets were "confident" that they were "doing each they tin to support nutrient prices arsenic debased arsenic possible".

"The UK has 1 of the astir competitory markets for nutrient successful the world, and arsenic planetary prices statesman to autumn we are assured that the competitory quality of the manufacture volition assistance nutrient ostentation autumn arsenic a result," helium said.

Higher nutrient prices person been hitting households hard successful caller months, and immoderate person questioned wherefore a driblet successful the outgo of wholesale nutrient globally has not led to falls successful the prices charged by UK supermarkets.

But the warfare successful Ukraine has driven up nutrient prices astir the world, and the UK has faced different problems connected apical of this - from Brexit reddish portion to labour shortages.

CMA main enforcement Sarah Cardell, said the watchdog recognised that "global factors" were down galore market terms increases and said it had seen "no grounds astatine this signifier of circumstantial contention problems".

She added owed to concerns astir precocious prices, the CMA was "stepping up our enactment successful the market assemblage to assistance guarantee contention is moving good and radical tin workout prime with confidence".

Ms Cardell said the watchdog was "concerned astir the sustained higher margins connected diesel compared to petrol we person seen this year".

She said her squad was not satisfied that each the supermarkets had been "sufficiently forthcoming with the evidence" connected substance pricing, and said bosses would beryllium called successful for ceremonial interviews to "get to the bottommost of what is going on".

The CMA said though supermarkets inactive thin to beryllium the cheapest retail suppliers of petrol and diesel, grounds indicated "at slightest 1 supermarket" had importantly accrued its borderline targets past year.

"Other supermarkets person recognised this alteration successful attack and whitethorn person adjusted their pricing behaviour accordingly," the watchdog added.

The CMA noted portion Russia's penetration of Ukraine had caused prices to rise, higher pump costs could not beryllium "attributed solely to factors extracurricular the power of the retailers".

It said the higher prices astatine the pumps appeared to beryllium successful portion owed to "some weakening of competition" successful the UK substance retail market.

A reappraisal of the substance marketplace has been ongoing for respective months, implicit archetypal concerns that retailers and forecourts were failing to walk connected a 5p substance work chopped to motorists.

Motoring groups claimed the findings from the CMA confirmed what they had been campaigning connected for immoderate clip - that drivers were not getting a just deal.

In December, the CMA said it recovered grounds that alleged "rocket and feather" substance pricing happened successful 2022, erstwhile substance prices emergence arsenic wholesale costs rise, but past autumn much dilatory than costs travel down.

"If ever a concern assemblage needed a large shake-up, it's the substance commercialized - captious to the outgo of living, household finances, transport costs and inflation," said Edmund King, president of the AA.

Simon Williams, substance spokesperson for the RAC, added: "Something severely needs to alteration to springiness drivers who beryllium connected their vehicles each time a just woody astatine the pumps. We anticipation adjacent amended quality volition beryllium forthcoming aboriginal this summer."