Federal Court restrains VIC company from supplying non-compliant diesel
15 December 2011
An injunction has been granted in the Federal Court to prevent a Melbourne company from supplying diesel that does not meet Australian standards.
The Federal Court ordered HML Investments Pty Ltd trading as Fuelways Express, Mitcham, Victoria, to only supply diesel that complies with the standards as set down by the Fuel Quality Standards Act 2000.
The injunction will be in place for two years and the respondent agreed to pay costs of $16,000 to the Australian Department of Sustainability, Environment, Water, Population and Communities.
A departmental spokesperson said the injunction was sought after the company was found by the department's fuel testing team to be continuing to sell non-compliant diesel despite a written warning and additional education being provided.
"Analysis of the diesel sample revealed a range of issues, the most serious of which was a flashpoint level lower than that demanded by the standards, which can lead to fire or explosion.
"Injunctions are aimed at stopping non-compliant and potentially dangerous action from continuing, thus protecting motorists and the environment. This acts as an additional deterrent to penalties under the Fuel Quality Standards Act 2000," the spokesperson said.
The testing found the company was supplying diesel that had a sulfur level greater than 10mg/kg, a distillation temperature at which 95 per cent of the diesel had been recovered which was above 360 degrees; a flash point level lower than 61.5 degrees and a filter blocking tendency greater than 2.0.
The Australian Government runs a national fuel sampling program to monitor the quality of fuel sold in Australia to ensure that it does not have an adverse impact on air quality. Fuels are sampled throughout the supply chain, including at service stations. Suppliers of non-compliant fuel may be prosecuted and/or required by Federal Court injunction to stop selling non-compliant fuel.
The standard of fuel in Australia directly affects the air quality which holds significant environmental and health concerns for all Australians. For information on the Fuel Quality Standards Act 2000 please visit: www.environment.gov.au/atmosphere/fuelquality/standards