Multiple drivers have submitted claims for insurance with United Petroleum alleging fuel contamination at the company's Legana petrol station.
Drivers reported experiencing engine faults soon after filling up at the station on the West Tamar Highway on Friday and Saturday. Witches hats were placed around the pumps on Saturday.
One driver purchased almost 100 litres of fuel from a diesel pump for their vehicle before heading across to the nearby shopping centre where it started to show signs of engine problems. It then stalled at traffic lights.
The driver has sent a sample of the fuel away for testing, but a "preliminary assessment" by a mechanic showed the fuel may have been petrol, not diesel.
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A Legana man drained the tank for his mother after her car had trouble pulling out of the service station while blowing out blue smoke. He said the fuel "didn't smell right" and may have been diesel.
He contacted United, and claimed they admitted there was a contamination fault at the site.
Another driver was able to travel about 30 kilometres before his car started bunny hopping.
He also said United admitted the fault when he contacted them about making an insurance claim.
"As a driver, I have been told that they will reimburse the damage to my car and that they admitted fault," he said.
"They used the word 'contaminated', but wouldn't say what it was contaminated with."
The Examiner attempted to contact United Petroleum multiple times on Monday, but had not received a response by Tuesday afternoon.
RACT general manager mobility services Darren Moody said drivers should keep receipts if they suspect fuel contamination.
"Motorists should keep proof of purchase, seek professional advice on any damage caused and contact the retailer on email@example.com or 03 9413 1400," he said.