The Association of Convenience Stores is using hypermarket fuel pricing as evidence of below cost selling as part of its wider evidence to the Office of Fair Trading calling for a review of the grocery market.
By setting the average selling price of the four major supermarkets – Tesco, Sainsbury, Asda and Morrisons/Safeway – against the quoted Platts selling price, the ACS’s paper demonstrates the extent to which hypermarkets are selling fuel below cost.
The evidence shows that on national average figures, hypermarkets traded with a negative margin from October 1-29, 2004, and then again from March 11-18, 2005.
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