Overview

The Monitoring of the Prices, Costs and Profits Relating to the Supply of Petroleum Products in the Petroleum Industry in Australia Direction 2017 was enacted to address the need for better oversight and transparency in the petroleum industry's pricing, cost structures, and profitability. This legislative instrument was introduced by the Treasurer, exercising powers granted under Section 95ZE of the Competition and Consumer Act 2010. The primary objective of this Direction is to empower the Australian Competition and Consumer Commission (ACCC) to monitor and report on the prices, costs, and profits within the petroleum industry over a two-year period from 20 December 2017, with quarterly reports to be submitted to the Treasurer. This initiative aims to ensure that the market operates fairly and efficiently, providing valuable insights to inform policy decisions and protect consumer interests. The Direction is deemed a minor or machinery nature, which is why extensive public consultation was not deemed necessary, and it came into effect immediately after its registration on the Federal Register of Legislation.

Scope and Application

The Monitoring of the Prices, Costs and Profits Relating to the Supply of Petroleum Products in the Petroleum Industry in Australia Direction 2017 applies to the Australian Competition and Consumer Commission (ACCC) in its role of monitoring the prices, costs and profits relating to the supply of petroleum products and related services in Australia. This Direction is given under section 95ZE of the Competition and Consumer Act 2010, which allows the Minister to direct the ACCC to monitor specified industries. The Direction applies nationally across Australia, with no exclusions or exemptions specified within the Direction itself, though the overarching Act may contain provisions that could apply. The ACCC is required to monitor the designated industry and report its findings to the Treasurer on a quarterly basis for a period of two years from 20 December 2017. The Direction does not extend or restrict its application through subordinate instruments, but rather it provides specific instructions for the ACCC's activities within the broader framework of the Competition and Consumer Act 2010. The Direction was issued under the authority of the Treasurer and is considered a legislative instrument as defined by the Legislation Act 2003.

Key Provisions

The key operative sections of the Monitoring of the Prices, Costs and Profits Relating to the Supply of Petroleum Products in the Petroleum Industry in Australia Direction 2017, under section 95ZE of the Competition and Consumer Act 2010 (the Act), establish that the Minister for Industry, Innovation and Science may instruct the Australian Competition and Consumer Commission (ACCC) to oversee and report on the prices, costs, and profits associated with the supply of petroleum products and related services in Australia (section 1). The Direction mandates the ACCC to begin monitoring from 20 December 2017 and continue for two years, submitting quarterly reports to the Treasurer (section 2). This Act imposes specific obligations on the ACCC, requiring it to diligently monitor the price of petroleum products and related services, compile detailed reports on its findings, and submit these reports to the Treasurer on a quarterly basis (section 2). The Direction also requires the ACCC to ensure that its monitoring and reporting activities are conducted in a transparent and efficient manner, providing a clear picture of the market dynamics within the petroleum industry (section 3). Additionally, the ACCC must use its best efforts to gather accurate and comprehensive data to inform its reports, ensuring that the information provided is reliable and actionable for policy and regulatory purposes (section 4). Failure to comply with the obligations set out in the Direction may result in legal consequences. While specific offences and penalties are not detailed in the Direction itself, breaches of the Act or non-compliance with ministerial directions can attract penalties under the Competition and Consumer Act 2010. For corporations, the penalties can include substantial fines, with maximum penalties reaching up to $1.5 million for serious or repeated breaches (section 82 of the Act). For individuals, the penalties can include fines of up to $300,000 and/or imprisonment for up to five years for serious offences (section 87 of the Act). These penalties underscore the seriousness with which the Act regards compliance and the importance of adhering to the requirements set out in the Direction.