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Guelph's bad gas customers receive compensation for repairs

Ella van Oene, one of a number of drivers who pumped the bad gas in January, is relieved and happy it's over
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The closed down Mobil gas station at 546 Woolwich St.

Guelph’s bad gas saga is coming to an end after nearly three months, with customers being offered compensation.

On Jan. 26 people who had filled up their gas tanks at the Mobil gas station at 546 Woolwich St. left and then their cars stopped working. It cost customers between $250 and $1,600 to fix between repairs, tow bills, cost of gas and their time.

Laci Frazier spent nearly $1,600 on her vehicle after she had to get it repaired from filling up her tank at the gas station. She received an email from Travelers Canada with a form to sign so she can receive a payment of $1,580.65.

Frazier started a Facebook group chat with the bad gas customers to band together and get their money back. She said their persistence paid off. 

Slowly throughout the day people have been chiming in to say the insurance company has contacted them about compensation. Frazier said the group created a spreadsheet of impacted people who made claims to the insurance company and there are about 40 people on the list.

Apex Property Management works for the mortgage company that was in possession of the gas station property. Apex is in control of the physical property and does not have anything to do with the Mobil gas station itself, said John Parchenko, COO of Apex.

The management company recommended the gas station close its operations before more damage was done, he said.

“That insurance company is actually the operator's insurance company. So if people are getting reimbursements, that's fantastic. And that means the insurance company is stepping up for once to actually help out the people that were hurt by purchasing fuel at the gas bar,” said Parchenko.

The operator, who spoke on condition his name not be published, confirmed it was his insurance company that settled with the customers and that the exact cause of the issue is still under investigation.

He said he is just happy the customers were compensated.

Travelers Canada is the liability insurer involved. The form indicates that if signed “it is agreed and understood that the said payment or promise of payment is deemed to be no admission of liability whatsoever to the releasor by the releasee.”

Ella van Oene also received a form from Travelers Canada. She said the amount she’ll be reimbursed is about $840. She is happy with the amount because it was about the cost she spent to repair the damage to her car after putting $20 worth of gas in the tank on Jan. 26.

“It's been a long process. I know there's a lot of people who are more pressed about this than I am. Just because I don't like to harbour, you know, super negative feelings towards anything or anybody,” said van Oene. She’s relieved and happy it’s over.

If anyone else finds themselves in a similar situation to hers she suggested people seek help from trustworthy places like their car dealership. She had the gas professionally tested and the results indicated there was likely windshield washer fluid in the gas.

Investigations regarding the fuel are still ongoing, said Parchenko.

Travelers Canada emailed impacted customers in February that testing would occur on March 4 and once it was finished it would send an update. Frazier asked to be provided with a report from the testing and she never received it. She also asked the insurer to name the liable party and it didn’t.

For van Oene, she won’t be avoiding Mobil gas stations in the future. "It was a bit of a fluke and “I don’t have any ill feelings towards the company,” she said.

Brian Holstein feels differently. He won’t be filling up at a Mobil gas station again.

Wednesday he was sent a reimbursement form from Travelers Canada to sign so he can receive a payment of $306.94.

“I would have liked to have it been done earlier. But considering it's an insurance company and red tape, and they would want to delay payments as long as possible, I suppose. I can't really complain,” said Holstein.

He spent about $250 on gas and repairs for his car because of the bad gas. 

Frazier won’t be going to a Mobil gas station again but for a different reason. She said the way her and others were treated by the corporation wasn’t compassionate.

She’s proud that she and the group were persistent about getting their money back. Although she hopes no one finds themselves unknowingly pumping bad gas in their cars she suggests they track down the right people to be compensated by.

Travelers Canada couldn’t be immediately reached for comment. 


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Santana Bellantoni

About the Author: Santana Bellantoni

Santana Bellantoni was born and raised in Canada’s capital, Ottawa. As a general assignment reporter for Guelph Today she is looking to discover the communities, citizens and quirks that make Guelph a vibrant city.
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