Petrol theft

Jeff Rogut

There have been discussions and articles in the media recently following Victoria’s Police Commissioner seeking all customers to pre pay for their petrol purchases as the way to eliminate drive off’s. Pre pay is one tool to address the issue, but not the total solution for our industry.

AACS has written to the Commissioner and the details are below for your information. Further updates will be provided as they develop.

Dear Commissioner,

I read your call for the introduction of pre-paid petrol systems to counter drive-off thefts in the media earlier this week. The Australasian Association of Convenience Stores (AACS) welcomes the focus on this matter and believes that a more consistent national approach that doesn’t jeopardise the convenience of the customer or the operator is required, as convenience is the key competitive advantage these stores have.

Drive-offs are a major problem for petrol retailers not only in terms of substantial revenue loss for small business operators, but also because of the dire safety consequences that can result from quick escapes by motorists. Having been a franchisee of a convenience store a number of years ago, I experienced first hand how drive off’s occur and the consequences of such actions.

We do welcome the police commitment to tackling petrol drive-offs, which can cost individual sites around the country tens of thousands of dollars in lost profit each year, but believe that pre-paid petrol systems alone are unsuitable as a blanket solution.

We would like to see a more consistent approach to address this problem, with the key being to implement a meaningful disincentive program to discourage one-off offenders and coerce habitual thieves.

We don’t see pre-paid systems as the only solution as this is at odds with the key offering of stores: to provide customers with a convenient service and experience. Stores shouldn’t have to jeopardise their service offering by inconveniencing their customers, nor should the vast majority of customers who do the right thing be inconvenienced by the few who don’t.

There are numerous inconveniences associated with mandatory pre-paid options. Customers may have to make multiple trips to the counter if they underestimate the petrol they require or they may have to return to the store to purchase additional items, adding to congestion during busy periods. There are also the high costs of potentially converting petrol pumps to allow payment at the pump, and manual systems are just too cumbersome for high volume sites.

Pre pay is one possible solution, however we also suggest that the introduction of fines similar to speeding fines and loss of licence demerit points would be more effective in reducing the incidence of drive-offs and is a more reasonable punishment for opportunistic offenders.

It is also important to differentiate between habitual offenders and opportunistic offenders, such as people who have a rush of blood or may simply forget to pay. Opportunistic offenders account for the majority of drive-off thefts and a fine or loss of licence points is more likely to ensure people don’t forget twice.

Some of our Members do have number plate recognition systems, and enhanced partnerships with law enforcement are also potential solutions to the problem.

In areas where this relationship is established, instances of petrol drive-offs are reported to a dedicated officer or department and are followed up quickly and effectively.

In other areas we are given to understand that police response times lag to the point where no action can be taken and in some cases no response is received at all, according to some of our Members.

A more consistent approach based on meaningful disincentives would send a clearer message to drive-off thieves, saving operators’ money, saving police time and resources and having positive safety implications.

I would point to some international examples which have the potential to address the problem closer to home.

In Toronto, Canada, the industry works effectively with the police by partnering with the crime stoppers department to identify fuel theft suspects. A similar initiative in Australia, coupled with genuine disincentive measures, could be effective in countering this significant business and safety problem.

In the Hamilton area of Toronto in Canada, the recent release of a convenience store industry information and safety kit outlines how operators can minimise the risk of fuel theft as well as safety tips on what to do when drive-off theft occurs. It outlines tips such as:

  • Watch each vehicle pulling up to the pumps
  • Maintain high visibility to pump islands and driveways, don’t allow displays or signs to obstruct the view
  • Make eye contact with the customer when activating pumps
  • Monitor outside cameras
  • Note suspicious people or vehicles hanging around the site
  • Ask every customer at the point of purchase if they have purchased fuel
  • Pay attention to the outer island pumps, especially at peak hours as fuel theft usually occurs when the site is busy
  • Use an intercom to acknowledge customers at the pumps

It may also be that during driver training, learners are made to appreciate that part of their responsibility as a motorist is to pay for fuel or they will face serious consequences similar to shop stealing.

Our industry takes this matter seriously and would be keen to participate in any discussions on initiatives that will drastically reduce, if not eliminate the problem of drive off’s.

Thank you,
JEFF.

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