Woolworths fined on six fuel offences

The grocery giant Woolworths has been convicted in the Perth Magistrates Court on six charges of selling fuel from its Caltex branded outlets at prices higher than those notified under WA’s Petroleum Products Pricing Regulations.

They were fined $20,000 and ordered to pay costs of $2,000.

Woolworths operates about 27 petrol stations in Western Australia.

The trader’s Madeley, Mandurah and Joondalup outlets committed the offences when they sold their fuel to consumers at prices higher than those notified to Consumer Protection’s FuelWatch service.

"We have always maintained that it is very important that all fuel sellers, regardless of how big or small they are, strictly comply with fuel pricing laws in order to ensure a level playing field for all," Consumer Protection Commissioner Patrick Walker said.

"Consumer confidence is put at risk if sellers fail to hold to the prices they notify to FuelWatch.

"The community expects us to enforce the laws that protect them, such as on this occasion, with a fuel seller lifting their prices on fuel after notifying a lower price to FuelWatch.

"This obviously is against the law. But in addition, many media outlets get from FuelWatch, fuel prices which they then promote to the community. If outlets switch their prices after lodging them, consumers could rightly feel swindled at the pump, and competitors of the seller rightly feel wronged," Mr. Walker said.

Prosecution action against Woolworths was taken when its compliance with the regulations did not improve following previous concerns raised by Consumer Protection.

"About 27,000 motorists subscribe to the FuelWatch daily prices notification service, and 150,000 people visit the website each month. These figures illustrate how important it is that traders comply with their responsibilities to set and hold their prices for the required 24-hour period," he said.

"The regulation of fuel pricing in Western Australia is delivering annual savings to motorists in the tens of millions of dollars.

"Since the introduction of FuelWatch, Perth’s fuel prices have become the cheapest in the country.

"For example, in 2003 Perth’s unleaded petrol prices were on average 2.3cents per litre more expensive than those in Melbourne.

"However 2004, 2005 and 2006 saw Perth’s average for unleaded petrol cheaper than it was in Melbourne, amounting to 1.5 cents per litre in 2006.

"This is a significant turnaround given that a 1 cent per litre reduction represents an annual saving of around $13million for WA motorists," the Commissioner said.

Western Australia is the only State with regulations that makes comprehensive information about fuel prices available to the community.