RACT members are reportedly facing unexpected disruptions to their fuel discount program, with United Petroleum allegedly ceasing the 6-cent-per-litre benefit earlier than planned at some locations.
The Royal Automobile Club of Tasmania announced in February it would not renew its partnership with United Petroleum following a franchisee of the fuel retailer’s legal troubles involving the underpayment of migrant workers.
At the time, RACT said members would continue to be able to access the current fuel offer until later in the year.
In a letter to members last week, RACT Group Chief Executive Officer Mark Mugnaioni claimed United Petroleum is now telling members the discount will end from 30 April 2025.
“[This] is earlier than RACT had expected or planned. In some locations, members are also reporting that United Petroleum are no longer honouring the discount [at all],” Mugnaioni said.
“We’re sorry that members are experiencing this disruption and we are working with United Petroleum to resolve these issues.”
“RACT expects the fuel discount to be honoured by United Petroleum and we have been assured that it will be available to members at all United Petroleum locations.”
The Federal Circuit and Family Court ordered KLM Foods Pty Ltd, the now-former franchisee of the United Kingston and Sandy Bay locations, to pay almost $180,000 in penalties for underpaying four workers from India and Bangladesh more than $20,000.
Judge Karl Blake noted the company’s sole director, Loveleen Gupta, showed no remorse and had not apologised to the underpaid employees.
Following RACT’s announcement to cut ties in February, United Petroleum CEO David Szymczak accused RACT of releasing “inaccurate information” about the matters.
“United Petroleum has been in an alliance with RACT for many years, offering 6 cents per litre discounts across Tasmania to RACT members. These discounts have saved RACT members many millions of dollars since the agreement began,” Szymczak said at the time.
“United Petroleum is disappointed that in recent days, RACT has released inaccurate information about these matters, without fact-checking first.”
“The Court Decision does not concern United in any capacity. It concerns KLM Foods Pty Ltd (KLM) and KLM’s sole director, Mr Loveleen Gupta.”
“At all relevant times, KLM was a commission agent of United and an independent third-party operator.”
RACT maintained it did not release any inaccurate information, noting it acknowledged the legal breaches were tied to an individual franchisee but chose to end the partnership on broader ethical grounds.
They are advising members who are not provided with the usual discount at any United Petroleum location to contact them via email.
The automobile club is working on securing a new partnership to ensure members continue to have access to fuel discounts.
