HEAD OF DIVISION, OFFSHORE RESOURCES AND LIQUID FUELS DIVISION
DEPARTMENT OF INDUSTRY, SCIENCE, ENERGY AND RESOURCES
NOTICE UNDER SECTION 17A OF THE FUEL QUALITY STANDARDS ACT 2000 CONCERNING VARIATION OF THE FUEL QUALITY STANDARDS (AUTOMOTIVE DIESEL) DETERMINATION 2019 – AMPOL, VIVA, MOBIL AND BP (EXPIRY 30 JUNE 2023)
I, Shane Gaddes, Head of Division, Offshore Resources and Liquid Fuels Division, delegate of the Minister for Industry, Energy and Emissions Reduction, provide the following information concerning my decision to vary four approvals granted under section 13 of the Fuel Quality Standards Act 2000 (the Act).
Approvals
Ampol Australia Petroleum Pty Ltd (formerly Caltex Australia Petroleum Pty Ltd),
ABN 17 000 032 128, dated 4 June 2020
Viva Energy Australia Pty Ltd, ABN 46 004 610 459, dated 28 May 2020
Mobil Oil Australia Pty Ltd, ABN 88 004 052 984, dated 4 June 2020
BP Australia Pty Ltd, ABN 53 004 085 616, dated 28 May 2020
Periods of operation
The variation extends the period of operation of each approval until 30 June 2023.
Details of the approval
The approvals to Ampol Australia Petroleum Pty Ltd, Viva Energy Australia Pty Ltd, Mobil Oil Australia Pty Ltd and BP Australia Pty Ltd (the listed approvals) were granted to vary the Fuel Quality Standards (Automotive Diesel) Determination 2019 (the Diesel Determination) so that fuel with a minimum flash point of 60.5 degrees Celsius will be taken to comply with the relevant parameter specified in the Diesel Determination in respect of the supply of automotive diesel fuel.
Pursuant to section 13A(1) and (2) of the Act, the listed approvals came into force on the date specified in the approval, and, before the variation, were to remain in force until 28 May 2022. The variation extends this date to 30 June 2023.
Summary of reasons for the approval
Having consulted with the Fuel Standards Consultative Committee as required by section 17D(3) of the Act, and after considering the criteria in section 15 of the Act, I have granted the variation to the listed approval holders for the following reasons:
(a) The protection of the environment
The diesel fuel flash point parameter is not subject to environmental regulations and is specified in the Fuel Quality Standards (Automotive Diesel) Determination 2019 for safety and handling purposes. Allowing diesel with a lower flash point (being 60.5 degrees Celsius instead of 61.5 degrees Celsius) to be supplied for use in Australia is not expected to impact on the environment. There is no impact of flash point on auto-ignition temperature or other combustion characteristics that may affect vehicle or emissions performance.
(b) The protection of occupational and public health and safety
The proposed reduction of flash point from 61.5 degrees Celsius to 60.5 degrees Celsius is not considered to be significant and does not change the Dangerous Goods Classification or the required health and safety handling procedures, including transport. The reduction may require a change to the hazard identification number of the fuel in those states or territories that require flash point identification on storage labelling.
(c) The interests of consumers
The flash point of fuels is not expected to adversely impact the interests of consumers. The flash point parameter does not have a direct correlation with the vehicle auto-ignition temperature or other combustion characteristics that may affect engine performance. Reducing the flash point by one degree Celsius is not expected to provide any negative impact on vehicle emissions, fuel consumption performance, operability or durability.
(d) The impact on economic and regional development
The lower flash point will allow for the improved utilisation and cost competitiveness of each barrel of petroleum, enabling the Applicants to maintain operations and supply of other fuels during this period of reduced demand for jet fuel. Importers have been included as a practicality due to co-mingled storage of stock. Both refineries’ operations generate employment opportunities and revenue to their local regions.
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Shane Gaddes
Head of Division, Offshore Resources and Liquid Fuels Division
20 May 2022