Western Australia's consumer watchdog has filed proceedings against Perth's cheapest fuel chain, Burk Fuel, over allegations it sold standard 91 octane petrol to motorists while charging for premium 95 and 98 grades. Consumer Protection Commissioner Trish Blake announced the proceedings on Monday, calling the alleged conduct an “extremely serious breach” of the Australian Consumer Law.
The allegations relate to eight Burk Fuel stations that sold fuel represented as 95 octane, and ten that sold fuel represented as 98 octane, with overlap across the company's 14 locations across the state. Blake said the misrepresentation is alleged to have occurred over seven months, after the watchdog received a tip-off from a whistleblower and sent secret shoppers to Burk Fuel sites.
“We have what we think is fairly rock solid evidence that there was an effort to mislead the public on all of those cases,” Blake said.
Blake said the fuel was independently tested by accredited laboratories. “On each and every occasion, the testing came back to show that the fuel was only at 91 octane, rather than the 95 or the 98 that consumers thought they were purchasing.”
Burk Fuel is known as Perth's cheapest petrol retailer, often undercutting competitors by up to 10 cents a litre. Blake said the alleged practice probably enabled those low prices.
The company has not been cooperating with the investigation, according to Blake. Consumer Protection executed search warrants and interviewed key stakeholders, but Burk Fuel “in terms of being forthcoming with their evidence, I would say no,” she said. Burk Fuel repeatedly fought with Consumer Protection over the release of documents related to the investigation, taking the matter to the State Administrative Tribunal. Lawyers for the business alleged the documents were subject to legal privilege.
The proceedings have only just been filed and the allegations are untested. Burk Fuel is expected to appear in Western Australia's Supreme Court to address the allegations.
Blake has also contacted Consumer Affairs Victoria after Burk Fuel opened three service stations in that state. “It's my understanding that the Commissioner for Consumer Affairs in Victoria is also looking at the quality of the fuel at those stations,” she said.
The watchdog will seek compensation for consumers who might be affected. “What we're seeking is obviously significant orders against the company, and we will be asking the court for orders of compensation for consumers that might be impacted by this conduct,” Blake said.
Burk Fuel is also separately fighting its landlords in the Supreme Court after alleging they tried to evict the business from five sites. That matter is ongoing.
Analysis
Why This Matters
- Motorists who filled up at Burk Fuel stations may have been overcharged for fuel that was of a lower grade than advertised.
- The case highlights potential weaknesses in fuel quality monitoring and enforcement in Australia.
- If the allegations are proven, it could have significant financial and reputational consequences for one of Perth's cheapest retailers, and may deter similar practices.
Background
Burk Fuel has built a reputation as Perth's cheapest petrol chain, with 14 locations across Western Australia and three new sites in Victoria. It often undercuts competitors by up to 10 cents per litre. The company is now facing legal action under the Australian Consumer Law for allegedly deceptive conduct.
What to Watch
- The outcome of the Supreme Court proceedings, including any compensation orders.
- The response from Burk Fuel and whether the company contests the allegations.
- Whether the Victorian consumer watchdog takes separate regulatory action regarding the company's stations in that state.
Checked
12 claims in this story checked against 1 source: 12 supported.
Show each claim
- SupportedPerth’s cheapest petrol chain faces court over allegations it sold standard 91-octane fuel as premium.The Age - Latest News: “Perth’s cheapest petrol chain allegedly charged motorists for premium 95 and 98 petrol while pumping standard 91 octane into their tanks, according to Western Australia’s consumer watchdog.”
- SupportedThe watchdog alleges Burk Fuel charged for 95 and 98 grades while pumping 91-octane petrol.The Age - Latest News: “Perth’s cheapest fuel chain allegedly charged motorists for premium 95 and 98 petrol while pumping standard 91 octane into their tanks, according to Western Australia’s consumer watchdog.”
- SupportedThe watchdog filed proceedings on Monday over the allegations.The Age - Latest News: “Consumer Protection Commissioner Trish Blake made the announcement on Monday”
- SupportedBlake described the alleged conduct as an “extremely serious breach” of the Australian Consumer Law.The Age - Latest News: ““In our perspective, that is an extremely serious breach of the Australian Consumer Law,” she said.”
- SupportedBlake said there was “fairly rock solid evidence” of an effort to mislead the public in all the cases.The Age - Latest News: ““We have what we think is fairly rock solid evidence that there was an effort to mislead the public on all of those cases,” Blake said.”
- SupportedBlake said testing showed the fuel was 91 octane, not the 95 or 98 consumers thought they were buying.The Age - Latest News: ““We’ve had the fuel tested independently by accredited laboratories, and on each and every occasion, the testing came back to show that the fuel was only at 91 octane, rather than the 95 or the 98 that consumers thought they were purchasing.”
- SupportedThe allegations concern eight stations selling fuel represented as 95 octane and ten selling fuel represented as 98, with overlap across 14 locations.The Age - Latest News: “the allegations related to eight stations selling fuel represented as 95 octane, and 10 selling fuel represented as 98 octane, with overlap across 14 stations total.”
- SupportedThe alleged misrepresentation occurred over seven months, following a whistleblower tip-off and secret shoppers’ visits.The Age - Latest News: “She said the alleged misrepresentation happened over the course of seven months, after Consumer Protection received a tip-off from a whistleblower and sent secret shoppers to Burk Fuel sites.”
- SupportedBlake said Burk Fuel had not been forthcoming with evidence, and the story quotes her saying, “in terms of being forthcoming with their evidence, I would say no”.The Age - Latest News: ““We executed search warrants. We interviewed various key stakeholders in the process – but in terms of being forthcoming with their evidence, I would say no,” she said”
- SupportedThe allegations are untested, and Burk Fuel is expected to appear in WA’s Supreme Court to address them.The Age - Latest News: “the company will be expected to appear in WA’s Supreme Court to address the allegations. They are currently untested”
- SupportedBlake contacted Consumer Affairs Victoria after Burk opened three service stations there, and said the Victorian commissioner was looking at fuel quality at those stations.The Age - Latest News: “Blake said she also contacted Consumer Affairs Victoria after Burk recently opened and began operating three service stations in the state. “It’s my understanding that the Commissioner for Consumer Affairs in Victoria is also looking at the quality of the fuel at those stations,” she said.”
- SupportedBlake said the watchdog would seek significant orders against the company, including compensation for consumers who might be affected.The Age - Latest News: ““What we’re seeking is obviously significant orders against the company, and we will be asking the court for orders of compensation for consumers that might be impacted by this conduct.”