The Federal Court of Australia has imposed a A$16 million penalty on Mobil Oil Australia for misleading advertising related to fuel sold at a group of Mobil-branded petrol stations in Queensland, the country’s competition regulator said on Tuesday.
Mobil Oil Australia, which supplies petroleum, diesel and other fuel products to retailers in Australia and is owned by Exxon Mobil, admitted to the court that it made false claims to consumers concerning its "Mobil Synergy Fuel." The admissions cover a period from August 2020 through July 2024, according to the regulator.
ACCC investigators found the conduct took place at nine Mobil petrol stations located in the north and central Queensland communities of Aitkenvale, Barcaldine, Berserker, Biloela, Guthalungra, Proserpine, Rasmussen, Rural View and Yeppoon. The regulator said the fuel provided to those sites was the same or substantially the same as unadditised fuel available at other non-Mobil retail locations.
According to the ACCC, the misleading statements were communicated through a variety of on-site signage and branding that promoted the supposed advantages of Mobil Synergy Fuel. The regulator said customers have no practical way to independently verify fuel composition and must rely on retailer information displayed at forecourts.
"Petrol is an essential good for most households, and there is no way of knowing what youre putting in your tank other than relying on the signage provided by the retailer," ACCC Deputy Chair Mick Keogh said.
Keogh added that it was likely some motorists chose to refuel at the affected Mobil sites believing they were receiving a different quality of petrol with specific benefits for their engines. The ACCC said the company's conduct breached Australian consumer law.
Mobil has agreed to make joint submissions with the ACCC to the court about proposed remedies and penalties. The regulator described the admissions and the proposed joint submissions as part of the next steps in court proceedings.
The company did not immediately respond to a request for comment.
The A$16 million fine converts to roughly $11.3 million using the exchange rate noted in the regulatory filing (A$1 = $0.7065 - presented in the original reporting as $1 = A$1.4152), reflecting the penalty in both local and U.S. dollar terms.
Contextual notes:
- The ACCC initiated court action in 2024 against Mobil Oil Australia alleging misleading representations about fuel.
- The company admitted the misleading conduct in the Federal Court and will participate with the regulator in proposing final orders and penalties.