A dispute between a small family-owned fuel stop in north-west Tasmania and national supplier United Petroleum has highlighted the challenges that independent operators can face when dealing with large fuel companies.
The Background
Wayne and Kay Pratt, who own the local service station, general store, and post office in Nunamara (a small town near Launceston), are defending themselves against a $150,000 claim brought by United Petroleum. The company alleges the couple failed to meet minimum monthly fuel purchase requirements under a supply agreement.
The Pratts say they entered into the agreement during the rebuild of their site, which had been badly damaged by fire in 2023. At the time, they believed they were being supported with supply arrangements and rebranding to help get their business back on its feet. However, the contract they signed set a fuel volume target of 58,000 litres per month – a figure they later argued was unrealistic given the local population of only around 300 people.
How It Escalated
United Petroleum claims the Pratts breached the terms of their agreement and later sold the business without offering United the first right of refusal, as required under the contract. The company also says it provided branding, signage, and other equipment for the site, which added to the dispute when the agreement was terminated in late 2024.
United is seeking almost $150,000 in damages, while the Pratts are defending the action themselves in Victoria’s County Court. Mediation efforts have so far failed, and the matter is expected to continue this year.
Wider Pattern of Disputes
This is not the first time United has been in court over its business arrangements. Other recent cases have involved disputes with staff and operators, raising broader concerns about the terms and viability of certain agreements. United rejects claims that its contracts are unfair, but the ongoing litigation has drawn attention from across the industry.
Lessons for ServoPro Members
For independent service station owners, this case is a timely reminder of the importance of carefully reviewing contracts with suppliers. Large companies often set minimum volume requirements, branding obligations, and resale conditions that may not align with the realities of smaller communities.
Taking the time to understand contract terms – and seeking advice before signing – can prevent costly disputes later on. It also highlights why independent operators benefit from support networks like ServoPro, where members can share experiences and gain guidance when dealing with complex supply arrangements.
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