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Petrol

Misleading discount fuel schemes

Discount fuel schemes offer cash rebates at the time of purchase of fuel, or at a later date. Some schemes require membership, whicle others require the consumer to meet certain terms and conditions to be eligible for the reduce price.

NSW Fair Trading is currently investigating misleading and deceptive fuel discount schemes at NSW petrol outlets and service stations. If you consider that you have been misled by unreasonable or undisclosed conditions attached to a fuel discount offer that made it impossible for you to get the advertised discount, we would like you to report your experience to Fair Trading. Our investigations usually rely on people who witnessed illegal conduct helping us by providing a written statement and then attending Court.  For that reason, we are not accepting anonymous information.

Report misleading petrol advertising

To report misleading or deceptive discount fuel schemes, please lodge an online complaint.

Please note we are not investigating the price of fuel or changes in the price of fuel.

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Fuel Quality

The quality of automotive fuel in Australia is regulated by the Fuel Quality Standards Act 2000 (the Act) that places an obligation on the fuel industry, including fuel suppliers, to supply you with fuel that meets strict environmental requirements.

For more information on fuel quality standards see the fuel quality pages on the Department of Sustainability, Environment, Water, Population and Communities website.

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Ethanol blend petrol

Ethanol, also known as ethyl alcohol, is a clear liquid fermented from sugar or other crops, such as grain. It can be used directly as a fuel or blended with gasoline.

Since 1 July 2003, the level of ethanol in petrol has been capped at 10 percent, under the Commonwealth Fuel Quality Standards Act.

At the wholesale level, the minimum ethanol content requirement for the total volume of petrol sold in NSW is 6%. This is prescribed in the Biofuel (Ethanol Content) Act 2007.

For further information, refer to the go to the NSW Office of Biofuels website at www.biofuels.nsw.gov.au

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Water in petrol

Water is present in most storage tanks at service stations. However, as petrol is lighter than water, the petrol will float on top in the storage tanks. The tanks and pumping system are designed to take the petrol from the top of the tank. Therefore, the water does not enter individual motor vehicle petrol tanks. Normally, fuel companies will test whether water is in the petrol. If a company refuses to do this, consumers concerned about possible water in fuel should contact Fair Trading on 13 32 20 for further information.

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Adulterated fuel

Adulterated fuel is a petroleum product such as petrol and diesel that has been added to or manufactured using other hydrocarbon products such as heating oil or white spirit. Adulterated fuel can cause considerable problems and damage to engines resulting in costly repairs.

There are also significant safety concerns. Adulterated fuel often has a lower flash point than the normal product and it therefore may be very dangerous.

Consumers who believe they have purchased adulterated fuel should:

  • complain to the manager of the service station
  • complain to the oil company head office.

If you are not satisfied with the response a complaint can be lodged with Fair Trading.

The Department of Sustainability, Environment, Water, Population and Communities will also investigate complaints involving adulterated petroleum products under the Australian Government's Fuel Quality Standards Act 2000. You can make a complaint online to the Department of Sustainability, Environment, Water, Population and Communities or call 1800 803 772.

Consumer claims for damage caused by adulterated fuel may be determined by the Consumer, Trader and Tenancy Tribunal (CTTT) under the Consumer Claims Act. Orders may be made to the value of $30,000 and can include payment of money, rectification of a defect and replacement of goods. Please refer to the CTTT for further information.

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Prices

The price of petrol is not directly regulated in Australia but is determined by market forces. The Commonwealth Trade Practices Act prohibits anti-competitive behaviour, such as price fixing, by any industry. Members of the public with any information on petrol price fixing are urged to contact the Australian Competition and Consumer Commission (ACCC) by calling 1300 302 502 or by email at petrol.monitoring@accc.gov.au

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Petrol price signs

All petrol station operators are required to display the price of regular unleaded petrol.
The sign must:

  • be positioned and lit so that any price it displays can be readily seen by motorists approaching the petrol station when the station is open; and
  • display a price that must be a price per litre of petrol. 

The Fair Trading Regulation 2007 sets out the Product Information Standard for petrol price signs.

The Regulation does not set a size for the display sign. Size should be determined by what is reasonable in the circumstances, given the criteria outlined above.

Petrol station operators will not have to display signs if the erection of a price sign is inconsistent with local council planning restrictions.

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