Fuel Quality Standards (Petrol) Amendment Determination 2022

Administered by Department of Climate Change, Energy, the Environment and Water

Legislation au F2022L00989 Not in force Legislative Instrument

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EXPLANATORY STATEMENT

Issued by the authority of the Minister for Climate Change and Energy

Fuel Quality Standards Act 2000

Fuel Quality Standards (Petrol) Amendment Determination 2022

Purpose and Operation

The purpose of the Fuel Quality Standards (Petrol) Amendment Determination 2022 (the 2022 Determination) is to amend the Fuel Quality Standards (Petrol) Determination 2019 (the 2019 Determination) to bring forward the implementation of 10 milligrams per kilogram (mg/kg) (equivalent to ‘parts per million’ or ‘ppm’ by mass) sulfur from 1 July 2027 to 15 December 2024 for all grades of petrol.

The 2022 Determination is a legislative instrument for the purposes of the Legislation Act 2003.

Background

The Fuel Quality Standards Act 2000 (the Act) provides the legislative framework for regulating the quality of fuel supplied in Australia. The objectives of the Act are to reduce the level of pollutants and emissions arising from the use of fuel that may cause environmental and health problems, facilitate the adoption of better engine and emission control technology, allow the more effective operation of engines, and ensure that, where appropriate, information about fuel is provided when the fuel is supplied.

The 2019 Determination was made under section 21 of the Act on 18 March 2019 to:

         revoke and replace the sunsetting Fuel Standard (Petrol) Determination 2001;

         set out the parameters and testing methods for petrol used in Australia; and

         provide certainty about the quality of petrol supplied in Australia.

Further details of the 2022 Determination are outlined in Attachment A.

Authority

The 2022 Determination was made under section 21 of the Act. Section 21 of the Act provides that the Minister may, by legislative instrument, determine a fuel standard in respect of a specified kind of fuel.

 

In addition to the power to make this instrument under section 21 of the Act, subsection 33(3) of the Acts Interpretation Act 1901 provides that where an Act confers a power to make, grant or issue any instrument of a legislative or administrative character (including rules, regulations or by-laws), the power shall be construed as including a power exercisable in the like manner and subject to the like conditions (if any) to repeal, rescind, revoke, amend, or vary any such instrument.

Consultation

The sulfur limit change has been developed following extensive public consultation in relation to a range of policy options to improve Australia’s fuel quality as part of the 2018 Better fuel for cleaner air Regulation Impact Statement. Two rounds of public consultation were conducted, as well as targeted consultation with key industry stakeholders to finalise options. Fuel producers, fuel importers, vehicle manufacturers and automobile associations were consulted. In response to consultation on the 2018 Regulation Impact Statement, there was broad support for reducing sulfur in petrol to 10 parts per million in 2027.

 

The previous Government consulted with stakeholders in 2021. An agreement was reached with stakeholders to bring forward the reduction of sulfur in petrol from 2027 to 2024.

 

Before determining a fuel standard under section 21 of the Act, the Minister must also consult the Fuel Standards Consultative Committee (the Committee) in accordance with section 24A of the Act. The Committee provided advice on the exposure draft of the 2022 Determination.

 

Regulatory Impact

For the sulfur changes it is estimated that the regulatory burden is likely to be minor (Office of Best Practice Regulation (OBPR) reference number 43742).

A Statement of Compatibility with Human Rights is set out in Attachment B.

Attachment A

Details of the Fuel Quality Standards (Petrol) Amendment Determination 2022

PART 1 – PRELIMINARY

Section 1 – Name of Instrument

This section specifies the name of the determination as the Fuel Quality Standards (Petrol) Amendment Determination 2022.

Section 2 – Commencement

This section provides that the determination commenced on the day after registration on the Federal Register of Legislation.

Section 3 – Authority

This section sets out the provision of the Fuel Quality Standards Act 2000 under which the determination is made.

Section 4 – Schedules

This section is a machinery clause that allows the Schedule to operate according to its terms.

 

Schedule 1 – Amendments

Items 1–2: Subsection 5(2) (item 17 of the table)

These items amend the sulfur specification to set a 10 mg/kg limit for all grades of petrol from 15 December 2024.

Attachment B

Statement of Compatibility with Human Rights

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

Fuel Quality Standards (Petrol) Amendment Determination 2022

This determination is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.

Overview of the Legislative Instrument

The purpose of the Fuel Quality Standards (Petrol) Amendment Determination 2022 is to amend the Fuel Quality Standards (Petrol) Determination 2019 to bring forward the implementation of 10 parts per million (ppm) sulfur from 1 July 2027 to 15 December 2024 for all grades of petrol.

Human rights implications

This determination does not engage any of the applicable rights or freedoms.

Conclusion

This determination is compatible with human rights as it does not raise any human rights issues.

 

The Hon Chris Bowen MP

Minister for Climate Change and Energy

 

Overview

The Fuel Quality Standards Act 2000 was enacted by the Parliament of Australia to establish a regulatory framework governing the quality of fuel supplied within Australia. This Act aims to reduce pollutants and emissions from fuel use, which can cause environmental and health problems, while facilitating the adoption of advanced engine and emission control technologies. It also seeks to ensure that information about fuel quality is provided when fuel is supplied. The Act allows the Minister for Climate Change and Energy to set fuel standards through legislative instruments, such as the Fuel Quality Standards (Petrol) Amendment Determination 2022. This Determination, issued under the authority of the Minister, modifies the previously set sulfur limits for petrol, advancing the compliance date from 1 July 2027 to 15 December 2024, and was developed following extensive consultations with industry stakeholders and public consultations.

Scope and Application

The Fuel Quality Standards Act 2000 provides the framework for regulating the quality of fuel supplied in Australia, with the primary objective of reducing pollutants and emissions that may cause environmental and health problems, as well as promoting the adoption of better engine and emission control technology. This Act applies to all persons and entities involved in the supply of fuel in Australia, including fuel producers and importers, and extends across the Commonwealth. The Act allows for the establishment of fuel quality standards through legislative instruments, and these standards can be further refined or amended through subordinate instruments. The Fuel Quality Standards (Petrol) Amendment Determination 2022, made under section 21 of the Act, serves to amend the previous determination by bringing forward the implementation of a sulfur limit of 10 milligrams per kilogram (mg/kg) for all grades of petrol from 1 July 2027 to 15 December 2024. This change was developed following extensive consultation with stakeholders and is aimed at enhancing fuel quality in Australia.

Key Provisions

The Fuel Quality Standards (Petrol) Amendment Determination 2022 primarily amends the Fuel Quality Standards (Petrol) Determination 2019 (sections 1-4 of Schedule 1). The key change is the reduction of sulfur content in all grades of petrol from 15 December 2024 instead of the previously scheduled date of 1 July 2027. This change is aimed at enhancing the quality of petrol supplied in Australia and reducing pollutants that can cause environmental and health problems. The determination is made under section 21 of the Fuel Quality Standards Act 2000, which allows the Minister to set fuel standards through a legislative instrument. The Act imposes several obligations on parties involved in the production and supply of petrol. These include adhering to the specified fuel standards, particularly the sulfur content limits, and ensuring that the petrol supplied meets the quality parameters outlined in the determination. The Act also mandates consultation with the Fuel Standards Consultative Committee before setting any fuel standards, as stipulated in section 24A of the Act. Fuel producers, importers, and other stakeholders must comply with these standards and ensure that their operations align with the regulatory requirements. In terms of consequences for non-compliance, the Act does not explicitly outline specific offences, penalties, or civil/criminal consequences within the text provided. However, non-compliance with fuel quality standards can generally lead to enforcement actions under the Act. These actions may include fines, corrective measures, or other regulatory sanctions imposed by the relevant authorities. The exact penalties would depend on the severity of the breach and the specific provisions of the Act and any related regulations.

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.