Notice under Section 17A of the Fuel Quality Standards Act 2000 for Variation of the Fuel Quality Standards (Conventional Diesel) Determination 2025 – IOR Energy Pty Ltd (Expiry 31 December 2028)

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

Legislation au C2025G00642 In force Gazette

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HEAD OF DIVISION, GAS AND LIQUID FUELS DIVISION

DEPARTMENT OF CLIMATE CHANGE, ENERGY, THE ENVIRONMENT AND WATER

NOTICE UNDER SECTION 17A OF THE FUEL QUALITY STANDARDS ACT 2000 FOR VARIATION OF THE FUEL QUALITY STANDARDS (CONVENTIONAL DIESEL) DETERMINATION 2025

– IOR ENERGY PTY LTD (EXPIRY 31 DECEMBER 2028)

I, Paula Svarcas, Head of Division, Gas and Liquid Fuels Division, delegate of the Minister for Climate Change and Energy, provide the following information concerning my decision under section 17D of the Fuel Quality Standards Act 2000 (the Act) to vary an existing approval made under section 13 of the Act.

Name of approval holder 

IOR Energy Pty Ltd (ABN 60 010 504 444) 

Details of the approval 

The existing approval to IOR Energy Pty Ltd was granted to vary the Fuel Quality Standards (Conventional Diesel) Determination 2025 (Conventional Diesel Standard) to permit the supply of diesel.

This approval extends the variation to the Conventional Diesel Standard so that fuel containing:  

  • a minimum density value of 800 kg/m3 and a maximum sulfur content of 50 mg/kg supplied under contract to commercial road users
  • a minimum density value of 790 kg/m3 and a maximum sulfur content of 125 mg/kg supplied under contract to commercial users for use in underground mining applications 

is taken to comply with the relevant parameters specified in the Conventional Diesel Standard in respect of the supply of diesel.   

Pursuant to paragraphs 13A(1) and (2) of the Act, the listed approval comes into force on the date of approval and remains in force for the period specified in the approval (being until 31 December 2028).  

Summary of reasons for the approval 

Having consulted with the Fuel Standards Consultative Committee as required by section 24A of the Act, I grant the approval with regard to matters specified under section 15 of the Act, in particular:   

(a) The protection of the environment 

Overall, IOR’s diesel has benign emission characteristics compared to other diesel fuels. IOR’s independent emission testing program shows that the emissions from its underground mining fuel were much lower than comparable commercial diesel. Additionally, emissions in underground mines are closely regulated by state governments and mining operators. Under these circumstances, it is unlikely that there will be any significant impact on the environment from the use of this fuel.

The fuel supplied for commercial road use is refined at IOR’s Eromanga Refinery and supplied in the surrounding region. The dispersed use of this fuel in a small number of remote locations means atmospheric sulfur concentration remains low, hence it is unlikely that there will be any significant impact on the environment from the use of this fuel.

(b) The protection of occupational and public health and safety 

In general, high levels of sulfur in diesel can lead to increased emissions of particulates into the atmosphere. However, emissions in underground mines are actively monitored to protect the health of all staff working in confined mine environments. Equipment and vehicles using IOR’s fuel in underground mining applications must meet state emission standards. Additionally, IOR’s independent emission testing program shows that the emissions from its underground mining fuel were much lower than comparable commercial diesel.

The fuel supplied for commercial road use is refined at IOR’s Eromanga Refinery and only supplied in the surrounding southwestern Queensland region and other remote regions. The dispersed use of this fuel in remote locations means atmospheric sulfur concentration remains low, hence any adverse impacts on occupational and public health and safety arising from this approval would be limited.

(c) The interests of consumers 

It is in the interests of consumers to have a choice of products available for use. Both fuels will be supplied for contracted commercial users only. Enabling supply of IOR’s fuels through this approval will ensure that remote regions have access to fuel without paying a premium to source supply from coastal fuel terminals, particularly for remote regions where IOR may be the sole fuel supplier.

(d) The impact on economic and regional development 

IOR’s refinery and plants provide employment opportunities for the local community in regional areas of Queensland, South Australia and New South Wales. Commercial industries also benefiting from IOR include cattle transporters, long haul freight operators, local shire councils, regional mining and pastoral companies.

Located in remote southwestern Queensland, IOR’s Eromanga Refinery maintains a considerable number of jobs in the region, both directly and indirectly. The Eromanga Refinery is a significant contributor to its local community and is the only local fuel supply in several remote towns and projects in the surrounding region. Enabling the supply of fuels under this approval reduces the significant adverse impacts on the local region that would occur from sourcing fuel from coastal fuel terminals.

 

 

 …………………………………………………………………………. 

Paula Svarcas 

Head of Division

Gas and Liquid Fuels Division    

26 November 2025 

Overview

The Fuel Quality Standards Act 2000 was enacted to ensure the quality of fuels sold in Australia meets specified standards to protect the environment, occupational and public health, and consumers. This Act provides the legislative framework for setting and enforcing fuel quality standards. The Fuel Quality Standards (Conventional Diesel) Determination 2025 was introduced to address variations in fuel quality for specific applications, particularly for underground mining and commercial road use by IOR Energy Pty Ltd. The Australian Parliament enacted this Act to establish a comprehensive regulatory system for fuel quality. The policy objective of the Act is to balance environmental protection and public health with economic and regional development interests. The approval for IOR Energy Pty Ltd to vary the Conventional Diesel Standard, granted by the Head of Division, Gas and Liquid Fuels Division, is an example of how the Act operates to allow specific fuel variations under strict environmental and safety considerations while promoting regional economic benefits.

Scope and Application

The Fuel Quality Standards Act 2000 governs the quality of fuel supplied within Australia, with specific provisions for the variation of fuel standards through delegations made under the Act. The Act applies to entities involved in the supply of fuel, including companies like IOR Energy Pty Ltd, which has been granted a specific variation to the Conventional Diesel Standard. This approval allows IOR Energy to supply diesel that meets certain density and sulfur content specifications for particular applications, namely for commercial road use and underground mining. The decision to grant this variation considers environmental protection, occupational and public health, consumer interests, and economic and regional development impacts. The approval is effective from the date of issuance and remains in force until 31 December 2028, with the scope limited to the specified parameters of the Conventional Diesel Standard. The approval process involves consultation with relevant committees as required by the Act and takes into account independent emission testing and state government regulations. This particular variation does not extend beyond the specified parameters and geographic regions mentioned, ensuring compliance with national fuel quality standards while accommodating specific regional needs.

Key Provisions

The Fuel Quality Standards Act 2000 (the Act) allows the Minister for Climate Change and Energy to vary fuel quality standards through delegated decisions, as specified in sections 17A and 17D. In this case, Paula Svarcas, the Head of Division, Gas and Liquid Fuels Division, has exercised this power to approve a variation of the Fuel Quality Standards (Conventional Diesel) Determination 2025 for IOR Energy Pty Ltd, effective until 31 December 2028. This approval permits IOR Energy Pty Ltd to supply diesel with certain specifications, including minimum density values and maximum sulfur content, to commercial road users and underground mining operations. The approval ensures that these fuels comply with the relevant parameters specified in the Conventional Diesel Standard, as stated in section 13 of the Act. This approval imposes several obligations and requirements on IOR Energy Pty Ltd and other relevant parties. Firstly, IOR must ensure that the diesel supplied meets the specified density and sulfur content parameters. Secondly, the approval is subject to consultation with the Fuel Standards Consultative Committee, as mandated by section 24A of the Act. This requirement ensures that the decision aligns with broader industry standards and environmental considerations. Furthermore, IOR must ensure that the use of its fuel does not significantly impact the environment, occupational and public health and safety, and regional economic development, as outlined in section 15 of the Act. The approval also ensures that the fuel is supplied only to contracted commercial users, limiting its use to specific, regulated applications. Any breach of the conditions set out in the approval under the Fuel Quality Standards Act 2000 may result in civil and criminal consequences. Section 26 of the Act allows for the imposition of penalties for non-compliance, which can include fines and imprisonment. The specific penalties are not detailed in the notice, but they generally reflect the severity of the breach. For instance, supplying fuel that does not meet the approved specifications could result in substantial fines, while more severe breaches, such as endangering public health or the environment, could lead to imprisonment. The exact penalties would be determined by the courts based on the nature and extent of the breach.

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