Inconvenient Truth About Pre-paid Pumps

Outgoing Chair’s Message

Frank Agostino, Former MTA SA/NT Chair

Service stations have been with us for a long time. Few are aware, but the Motor Trade Association of South Australia was originally founded by a group of fuel retailers almost 100 years ago.

We have seen leaded and unleaded and the return of ethanol-based fuels. Diesel is now as popular as ever, whereas liquefied petroleum gas (LPG) hasn’t quite gone the mile. Today electric vehicle chargers are being installed and maybe one day we will see hydrogen sold to the public.

As the fuels which drive our mobility have evolved, so too has the service station to reflect the consumer needs of a country that loves its cars.

Situating themselves as part of our daily journeys, service stations have become our morning coffee fix, our newspaper pick up and our lunch break on that big road trip. Filling the gap of the once ubiquitous neighbourhood corner store, they offer us choice and flexibility.

Pre-paid pumps are not a new invention, and they have their place in limited circumstances. But mandating them across the State is not the solution it is cracked up to be.

Locally, the service station convenience sectors employs more than 4,200 South Australians across almost 700 locations who rely on customers grabbing that pie, a loaf of bread or bottle of milk to grow our economic opportunity.

Experience shows us that customers do not like pre-paid pumps which add an unnecessary guessing game for customers who just want to fill up.

While some have pointed to the United States as an example where pre-paid pumps have solved fuel theft, the reality is that this only moved behaviour from drive offs to a rise in credit card fraud.

Modern day policing is not an easy job. Police are busier than they have ever been, and the industry is mindful not to waste their time. That is why we must work together smarter and not harder.

Industry can provide the best chance of successful police action by handing over high quality CCTV footage and licence plate numbers. But we also know that there is more we could be doing to make life easier for everyone.

Interstate, Queensland have trialled a model where those who drive off without paying are given a friendly reminder by text message and email, allowing them to return and pay. Those who ignore risk further action. In Western

Australia, industry has worked with government to introduce technology which automatically detect known offenders and report them to police.

In reality, many who inadvertently drive off without paying for fuel are back shortly. Embarrassed maybe, but certainly not criminals.

However, the industry is concerned by growing instances of deliberate, organised and repeated theft. Like it or not, theft remains a criminal offence deserving of appropriate attention.

That we lovingly refer to service stations as ‘servos’ cements their place in our Australian culture and vernacular. Before jumping to conclusions about the best way to tackle this issue, let’s make sure we are not doing more harm than good.