Australian court fines Exxon's local petrol brand $11.3 million for misleading claims

Feb 17 (Reuters) - Federal Court of Australia has fined Mobil Oil Australia A$16 million ($11.3 million) over misleading claims about fuel sold at petrol stations in parts of Queensland, the country's competition regulator said on Tuesday.

Mobil Oil Australia supplies petroleum, diesel and other fuel products to retailers in Australia and is owned by oil and gas major Exxon Mobil XOM.N.

In 2024, the Australian Competition and Consumer Commission (ACCC) had taken the local unit to court, alleging that the company had misled customers about fuel sold at six of its branded petrol stations in Queensland.

On Tuesday, Mobil admitted it had made misleading claims to consumers between August 2020 and July 2024, falsely indicating that its "Mobil Synergy Fuel" contained certain additives, ACCC said in its statement.

The conduct occurred at nine Mobil petrol stations in the north and central Queensland towns and suburbs of Aitkenvale, Barcaldine, Berserker, Biloela, Guthalungra, Proserpine, Rasmussen, Rural View and Yeppoon.

The fuel supplied to the petrol stations was the same or substantially the same as unadditised fuel at other non-Mobil retail sites, the regulator added.

ACCC said the claims were made through a range of signage and branding at the nine petrol stations that promoted the benefits of Mobil Synergy Fuel.

"Petrol is an essential good for most households, and there is no way of knowing what you're putting in your tank other than relying on the signage provided by the retailer," ACCC Deputy Chair Mick Keogh said.

"We considered it very likely that some people chose to fill up at these petrol stations because they thought they were getting a different quality of petrol with particular benefits for their car engine."

The firm's conduct was in breach of the Australian consumer law, ACCC added in its statement.

Mobil has agreed to make joint submissions with the ACCC to the court about the proposed orders, including penalties, the regulator said.

The company, however, didn't immediately respond to a Reuters' request for comments.

($1 = A$1.4152)