Guidelines Under Sub-Section 13 (1) of the Liquid Fuel Emergency Act 1984

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EXPLANATORY STATEMENT

STATUTORY RULES 1984 NO. 94

LIQUID FUEL EMERGENCY ACT 1984

GUIDELINES UNDER SUB-SECTION 13(1)

Sub-section 13(1) of the Liquid Fuel Emergency Act 1984 (‘the Act’) provides that the Minister may, by instrument in writing, specify guidelines for the allocation of liquid fuel by suppliers to identified bulk customers.

Under sub-section 13(1) of the Act, the Minister may direct fuel suppliers to develop stand-by procedures for operating systems (described in Sections 21 and 22) of bulk allocation of fuel to identified bulk customers (identified under Section 10). These directions are constrained by the provisions of the Guidelines under 13(1).

The Guidelines limit the bulk allocation system to prescribed products, prescribed classes of relevant fuel industry corporations, and identified bulk customers. Systems are to allocate to each bulk customer a percentage of “normal” consumption, calculated from average monthly purchases during the preceding 3 months and purchases in prescribed months in the same season of the previous year. Provisions are included for abnormalities in fuel use patterns and for “new” bulk customers, either without a documented history of purchases from their current supplier or intending to commence operations that require the use of a prescribed fuel.

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