Perth’s cheapest petrol chain faces prosecution over claims it passed off 91 fuel as premium

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.

Consumer Protection Commissioner Trish Blake made the announcement on Monday, and said the agency would claim motorists were paying for premium grade fuel despite testing indicating it was unleaded 91.

Blake said 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.

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.

“In our perspective, that is an extremely serious breach of the Australian Consumer Law,” she said.

“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.

“The proceedings have just been filed today, so it will be some time before we actually get the magnitude of it.”

The case comes after a nearly year-long investigation by authorities and the company will be expected to appear in WA’s Supreme Court to address the allegations.

They are currently untested and this masthead does not suggest they are true.

“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.

Burk Fuel often undercuts its competitors by up to 10 cents on the litre, and Blake said the practice was likely enabled by the alleged conduct.

“As a model litigant – as a government department – I wouldn’t be bringing these proceedings if I didn’t think that we were on very solid ground,” she said.

“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. We also had quite a fair bit of other evidence available to us as well,” Blake said.

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.

Blake also said Burk had not been cooperating.

“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

Burk Fuel repeatedly fought with Consumer Protection about the release of documents related to the investigation, dragging the matter before the State Administrative Tribunal. Lawyers for the business alleged the documents were subject to legal privilege.

It will be Burk Fuel’s second matter currently before WA’s Supreme Court, after this masthead revealed the company was suing its landlords and alleging they tried to kick the business out of five sites around the state.

Burk Fuel lodged a writ in WA’s Supreme Court in July against five corporate entities who leased sites to the cheap fuel carrier, alleging in one instance the landlord swooped into one of its petrol stations in Arthur River in May and terminated its lease.

The company alleged one of the landlords “failed in accordance with the lease for the Arthur River site to rectify structural damage to the building … and without notice entered possession of and thereby terminated the lease for the Arthur River site”.

About two months after the landlord took back the Arthur River site, the writ claimed, it also came knocking for four of its other leases – including in Williams, Carrabin, Camillo and Beaufort River.

Burk Fuel was handed a notice to forfeit and terminate the leases.

It is currently fighting the termination and is due back in the Supreme Court at a later date. All Burk sites remain operating as usual, aside from Arthur River.

Blake did not say whether Consumer Protection would be referring parts of their investigation to other agencies.

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Hannah Murphy is a journalist with WAtoday covering breaking and general news. She previously worked for the ABC in the state’s Kimberley region.Connect via email.