Mobil Settles $16 Million Fine for False Fuel Claims

Mobil Oil Australia has been penalized with a $16 million fine by the Federal Court for misleading fuel claims. The Australian Competition and Consumer Commission (ACCC) accused the company of falsely advertising its fuel at various petrol stations in Queensland.

Details of the Misleading Claims

The ACCC filed legal action against Mobil in December 2024, revealing that the company made deceptive statements about its Mobil Synergy fuel branding. These claims suggested that the fuel contained unique additives for better engine protection and performance.

Locations Affected

Mobil’s misleading fuel was sold at nine independently operated petrol stations, including:

• Townsville
• Mackay
• Proserpine
• Guthalungra
• Yeppoon
• Rockhampton
• Biloela
• Barcaldine

Regulatory Findings

The court ruled that the claims made by Mobil were false. ACCC Deputy Chair Mick Keogh emphasized that the fuel sold did not have the mentioned additives, which were promoted to protect engines from corrosion, improve emissions, and enhance fuel economy.

Industry Implications

Keogh noted that Mobil’s conduct disadvantaged other retailers who were providing honest information about their products. He stated that the ruling sends a strong message to the industry regarding the importance of accurate advertising.

Company Response

A spokesperson for Mobil expressed regret for the misleading sales and extended apologies to affected customers. The company asserted that these incidents were isolated to specific sites, which represent only a small portion of its network in Australia.

Mobil claimed that the misleading allegations were primarily due to operational challenges and remote site issues. They also assured that all fuel sold complied with Australian fuel quality specifications throughout the process.

Conclusion

The $16 million penalty against Mobil Oil Australia highlights the critical need for transparency in fuel marketing. The case serves as a warning to all retailers about the importance of honesty in product claims.