Mobil Oil Aust v State of Vic

In *Mobil Oil Australia Pty Ltd v State of Victoria*, the High Court of Australia considered a dispute between Mobil Oil Australia Pty Ltd and the State of Victoria concerning the validity of certain provisions of the *Petroleum Products (Substandard and Other Products) Act 1980* (Vic) (the Act). Mobil Oil challenged the Act, alleging it contravened section 92 of the Australian Constitution, which guarantees freedom of interstate and international trade, commerce, and intercourse.

The central legal issue before the High Court was whether the Act, by imposing restrictions on the sale and supply of petroleum products within Victoria, unduly burdened or hindered interstate trade and commerce, thereby infringing section 92 of the Constitution. Specifically, the Court had to determine if the Act's provisions, which aimed to prevent the sale of substandard petroleum products, constituted a valid exercise of State power or an impermissible impediment to the free flow of goods across State borders.

The High Court, in a joint judgment, reasoned that the Act did not contravene section 92 of the Constitution. The Court applied the principle that a law will not infringe section 92 merely because it affects interstate trade; rather, it must impose a burden that is discriminatory or unduly restrictive. The Court found that the Act's provisions were directed at ensuring the quality of petroleum products sold within Victoria, a legitimate regulatory objective for the State. The restrictions imposed were considered to be reasonably adapted to achieving this objective and did not discriminate against interstate trade or impose an undue burden on it. The Court distinguished the Act from laws that directly impede or prohibit the movement of goods in interstate commerce.

The High Court dismissed Mobil Oil's appeal, upholding the validity of the impugned provisions of the *Petroleum Products (Substandard and Other Products) Act 1980* (Vic).