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)

Overview

The Fuel Quality Standards Act 2000 was enacted to ensure that fuel quality standards are set and maintained to protect the environment, and safeguard occupational and public health and safety. The Act provides a framework for the regulation of fuel quality in Australia, including the establishment of fuel quality standards and the granting of approvals to suppliers who meet these standards. The policy objective of the Act is to ensure that fuel supplied in Australia meets the necessary quality standards, thereby protecting the environment and public health and safety. Pursuant to the Act, the Head of Division, Offshore Resources and Liquid Fuels Division, has varied the periods of operation of four approvals granted to Ampol Australia Petroleum Pty Ltd, Viva Energy Australia Pty Ltd, Mobil Oil Australia Pty Ltd and BP Australia Pty Ltd, which allow for the supply of automotive diesel fuel with a minimum flash point of 60.5 degrees Celsius. The variation extends the periods of operation of the approvals until 30 June 2023. The variation was granted after consultation with the Fuel Standards Consultative Committee, and after considering the criteria in the Act, including the protection of the environment, the protection of occupational and public health and safety, the interests of consumers, and the impact on economic and regional development.

Scope and Application

The Fuel Quality Standards Act 2000, under which the Fuel Quality Standards (Automotive Diesel) Determination 2019 was made, applies to the supply of automotive diesel fuel in Australia. The Act regulates the quality of fuel supplied in Australia to protect the environment, public health and safety, and consumer interests, as well as to maintain economic and regional development. The Act applies to entities involved in the supply of automotive diesel fuel, including Ampol Australia Petroleum Pty Ltd, Viva Energy Australia Pty Ltd, Mobil Oil Australia Pty Ltd, and BP Australia Pty Ltd, which were granted specific approvals to vary the minimum flash point of diesel fuel. The Act extends across the Commonwealth of Australia, with its provisions enforced by the Department of Industry, Science, Energy and Resources. Subordinate instruments may further define the application of the Act. The variation of the approvals does not exclude any entities or conduct from the Act's application but extends the period of operation of the listed approvals until 30 June 2023. The Act does not specify any thresholds or exemptions in this context.

Key Provisions

The main sections of the Fuel Quality Standards Act 2000 relevant to the variation of the fuel quality standards approval are sections 13, 13A, and 17A. Section 13 permits the Minister to grant approvals for variations to the Fuel Quality Standards, while section 13A outlines the commencement and duration of these approvals. Section 17A requires the Minister to consult with the Fuel Standards Consultative Committee before making a decision on such variations. In this case, the Head of Division has exercised the Minister's powers under section 17A to vary the approval given to Ampol Australia Petroleum Pty Ltd, Viva Energy Australia Pty Ltd, Mobil Oil Australia Pty Ltd, and BP Australia Pty Ltd. These variations extend the period of operation of the approvals from 28 May 2022 to 30 June 2023. The obligations imposed by the Act on the parties involved include adhering to the terms of the approval, which allow for the supply of automotive diesel fuel with a minimum flash point of 60.5 degrees Celsius. These companies must also comply with any additional conditions specified in their individual approvals, which may include requirements related to record-keeping, reporting, or monitoring to ensure compliance with the variation. Additionally, the companies must ensure that their operations do not negatively impact the environment, occupational and public health and safety, or the interests of consumers, as outlined in the reasons for the approval. The Act does not explicitly outline specific offences, penalties, or consequences for breaching the terms of the approval. However, any non-compliance with the conditions of the approval or the Act itself may result in enforcement actions by the relevant authorities, such as the Australian Competition and Consumer Commission or state-based environment protection agencies. Possible consequences for breach may include fines, corrective actions, suspension or revocation of the approval, or legal proceedings. The specific penalties for breach would depend on the nature and severity of the breach, as well as any applicable laws or regulations.