Low-sulphur diesel fuel being sold in Queensland and northern NSW has led to nearly 11,000 insurance claims from vehicle owners.

Claims administrator Wyatt Gallagher Bassett was appointed by the region’s petrol refiners to administer claims after it was discovered that fuel pump seals in older vehicles can be affected by the new fuel. So far 7000 claims out of 10,800 have been settled. Claims are being received at a rate of 70 to 80 a day.

Simon Priebbenow, Wyatt GB’s Victorian Claims Manager, said most claims are to replace older vehicles’ fuel pump seals, a job that costs an average $410.

The new fuel, which is more environmentally friendly, will become mandatory across Australia in the next year. The refiners will presumably continue to pay for older engines that can’t cope.