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 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 the Environment and Heritage (DEH) 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 the Environment and Heritage or by calling 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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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.

There are currently fuel quality standards for petrol, diesel, biodiesel and autogas (LPG).

Under current laws, you can buy petrol that contains up to 10% ethanol. Fuel sellers who sell fuel containing ethanol must label the fuel pump. The label must tell you that the petrol you are buying contains ethanol. See the Fuel Quality Information Standard (Ethanol) Determination 2003 for more information.

The Australian Government runs a fuel sampling program to monitor the quality of fuels sold in Australia and ensure compliance with the Act. Through this program, fuel samples are taken throughout the fuel supply chain, including at service station forecourts.

For more information on fuel quality standards see the fuel quality pages at the Department of the Environment and Heritage.

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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

Case study: Buying petrol - read about George and his spillover at the petrol station...

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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. 

Under the Fair Trading (Product Information Standards) Amendment (Petrol Prices) Regulation 1999, display of the price applies only to the price of regular unleaded petrol which is the most commonly used fuel in NSW.

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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Following successful trials in other states and the experience of overseas countries, the Service Station Association (SSA), in conjunction with the NSW Police, has introduced a fuel pre-pay system. The system is designed to eliminate the theft of fuel, enhance community safety, and to reduce associated crimes such as car theft. 

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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.

The Federal Government commenced requirements for the labelling for ethanol blended fuel in 2004.

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