AACS: FUEL DRIVE-OFF RECOMMENDATIONS BARELY SCRATCH THE SURFACE

March 10, 2016: The release of the Victorian Government’s report into fuel drive-offs has been met with disappointment by the Australasian Association of Convenience Stores (AACS), with the recommendations glossing over widespread calls for a proper deterrent for repeat offenders – civil or otherwise – and appearing to adopt an approach that “it’s all too hard”.
AACS CEO Jeff Rogut said service station owners and employees across Victoria were optimistic that a genuine effort to tackle the spiralling crime of petrol theft was around the corner when the inquiry into fuel drive-offs, undertaken by the Law Reform, Road and Community Safety Committee, was announced.
However the industry has instead been left with a series of empty recommendations that either ignore the small business perspective, or simply reinforce actions the industry has already independently taken.
“One of the major concerns those in the industry have about petrol theft – aside from the hundreds of dollars robbed on average from every store each week – is that there is no real deterrent attached to this crime. The recommendations made don’t touch on this critical point and therefore represent a missed opportunity,” Mr Rogut said.
“Our retailers are at the forefront of this issue, they see it happening each week and they pay the financial cost, all while trying to operate their small businesses. It’s concerning that the Committee’s report does nothing to encourage a more active approach to proactively tackle this crime.
“Instead, the recommendations effectively give police further mandate to ignore the problem, ensuring the burden remains on retailers to tackle this crime themselves.
“At best, the recommendations encourage police to consult with industry and develop consistent and concise policies on reporting petrol theft, yet there’s no directive for police to actually do more to stop these thieves.
“What’s more disappointing is these efforts to consult and develop improved procedures were already in progress of the industry’s own accord, and at its own expense. It’s difficult to see the whole inquiry as anything but a waste of time and money,” Mr Rogut said.
Petrol theft is a crime which costs the convenience industry upwards of $60 million nationally. On average, each service station in Australia loses around $220 per week as a result of this crime.
One of the most inaccurate and potentially damaging references in the final report is the apparent assertion by Victoria Police, following a prepay petrol trial in Melbourne dating back to 2002, that prepay systems resulted in no reduction in the volume of fuel sold or shop sales.
“We know this is not the actual case. Case studies in Canada, for example, show that store sales decline by as much as 30% initially. Mandatory prepay is simply not a viable option for retailers, for whom impulse sales and add-on purchases contribute considerably to their profitability,” Mr Rogut said.
“As Victoria Police has itself acknowledged, ‘prepayment penalises all consumers despite only a small number actually doing the wrong thing’. It also penalises retailers and as such is inappropriate as a blanket solution.
“It’s important to bear in mind that petrol is a low margin product for retailers. Forcing consumers to prepay could jeopardise the viability of some small businesses,” he said.
The AACS acknowledges and appreciates, throughout the inquiry, the continued consultative efforts of Victoria Police with industry stakeholders to develop improved technology, including recognition of stolen plates, unregistered and stolen vehicles, to assist retailers in tackling this crime and bringing offenders to account before the law.
Mr Rogut said the AACS has been working for years to achieve greater cooperation between industry and the relevant Victorian authorities, including Victoria Police and VicRoads, when it comes to petrol theft crimes.
“Consultative groups and improved reporting mechanisms appear to dominate the Committee’s recommendations but, in reality, these initiatives were already underway. For instance, the continued development of technology enabling real time access to suspect, unregistered or stolen registration plates is in progress,” Mr Rogut explained.
“What AACS members were hoping for out of this inquiry were real actions that acknowledged the criminal nature of petrol theft by providing genuine deterrents and a commitment to prosecute offenders accordingly,” Mr Rogut said.
“What has been delivered is a relatively empty set of recommendations that fail the small business test and are without the necessary clout to drive any real crackdown on this crime,” he said.
Further information:
Jeff Rogut
Chief Executive Officer
Australasian Association of Convenience Stores
Ph: +61 467 873 789
Media enquiries:
Stephen Naylor
Wise McBaron Communication
Ph: +61 (2) 9279 4770