Notice under Section 17A of the Fuel Quality Standards Act 2000 for Variation of the Fuel Quality Standards (Petrol) Determination 2019 - Muranno Group Pty Ltd (Expiry 30 June 2023)

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

Legislation au C2022G00533 In force Gazette

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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 FOR VARIATION OF THE FUEL QUALITY STANDARDS (PETROL) DETERMINATION 2019
- MURANNO GROUP PTY LTD (EXPIRY 30 JUNE 2023)

 

I, Shane Gaddes, Head of Division, Offshore Resources and Liquid Fuels Division, delegate of the Minister, provide the following information concerning my decision to grant an approval under section 13 of the Fuel Quality Standards Act 2000 (the Act).  

Name of approval holder

Muranno Group Pty Ltd, trading as Panta Distribution Australia (ABN 41 627 498 515)

Details of the approval

The approval to Muranno Group Pty Ltd was granted to vary the Fuel Standard (Petrol) Determination 2001 and the Fuel Quality Standards (Petrol) Determination 2019 (2019 Determination) to permit the supply of petrol specified in the original grant of approval. The Fuel Standard (Petrol) Determination 2001 was superseded by 2019 Determination. Original approvals and subsequent variations continued to apply under the 2019 Determination.

Pursuant to section 13A(1) and (2) of the Act, the listed approval came into force on the date specified in the approval, and remain in force for the period specified in the approval extension (being until 30 June 2022).  

Details of the variation

Pursuant to section 17D(1) of the Act, the period of effect of the listed approval has been varied in respect of the supply of petrol until 30 June 2023. The conditions and regulated persons list have also been updated.

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(1) of the Act, I have granted the variation to the listed approval holder for the following reasons:

a)            The protection of the environment

As the fuel subject to this approval is supplied and used in small quantities for legitimate motor sport activities, the higher levels of ethanol and MTBE are not expected to impact significantly on ambient air quality.

The consequences of even a small amount of MTBE contaminating water sources can be significant. It is therefore a standard condition of approving a variation of the Petrol Determination in relation to fuel containing MTBE above the limit specified in that determination, that the fuels are not used on freshwater lakes or waterways. It will be a condition of approval that the containers are labelled stating that the fuels must not be used near fresh water, and that any spills are to be contained appropriately and disposed of to protect groundwater.

The fuel is expensive relative to normal fuels and the price provides a disincentive for any waste, misuse, or spillage.

It is therefore not expected that permitting the supply of the fuels covered by this approval for legitimate motor sport activities would have an irreversible effect on the environment.

b)         The protection of occupational and public health and safety

Exposure to certain substances in petrol can be toxic. The risks associated with exposure to racing fuels may be higher than for petrol because of the additional substances contained in them. A variety of negative health effects can occur, depending upon the substance, the level, and duration of exposure. At venues that use racing fuels, exposure may extend to drivers, team members, race officials, spectators, and the immediate environment. 

Specialist racing fuels are supplied in sealed containers of up to 200 litres capacity and are used in small quantities, predominantly in off-road activities, and in widely dispersed locations. Safe handling information will be provided with the fuel. The volume of fuel to be supplied under an approval is limited. Under these conditions, occupational and public health and safety risks resulting from short-term/intermittent use of these fuels will be minimised. 

c)            The interests of consumers

Specialist racing fuels meet the needs of a niche market for specific categories of motor racing. The consumers using these fuels seek the performance and operability characteristics provided by these fuels. Without them, motor sport competitors may not be able to operate their vehicles effectively with currently available technology. Panta’s application represents an additional choice for racing consumers with a range of European products which can be used in circuit, rally, motorcycle, and kart racing. Fuels are sold in relatively small volumes, with relatively few suppliers to the Australian market.

d)         The impact on economic and regional development

Many racing venues are located outside major population areas. Motor and water sports events provide an ongoing financial benefit to these regional communities. A decision to disallow the continued and controlled supply of specialist racing fuels would have an adverse effect on national and regional motor sport competitions and the economic benefits that flow from them.

 

 

 

 

 

………………………………………………………………………….

 

Shane Gaddes

Head of Division, Offshore Resources and Liquid Fuels Division 

23 June 2022

 

Overview

The Fuel Quality Standards Act 2000 was enacted by the Australian Parliament to establish and regulate standards for fuel quality, thereby protecting the environment, public health, and safety. The Act was designed to address the need for comprehensive regulation of fuel quality across Australia, ensuring that fuels sold in the country meet specific quality standards to mitigate environmental damage and health risks. This legislation empowers the Minister to make determinations that set out the standards to be met by fuels. The Fuel Quality Standards (Petrol) Determination 2019, which superseded the Fuel Standard (Petrol) Determination 2001, provides the framework for petrol quality in Australia. In this context, the approval granted to Muranno Group Pty Ltd under section 13 of the Act aims to allow for the variation of these standards for the supply of petrol for specific uses, such as motor sport activities, ensuring these activities can continue safely and effectively while balancing environmental protection and public health considerations.

Scope and Application

The Fuel Quality Standards Act 2000 applies to persons and entities involved in the production, importation, supply, and sale of liquid fuels within Australia, with a particular emphasis on maintaining standards to protect the environment, occupational and public health, and consumer interests. The Act extends its reach across the Commonwealth, ensuring that all fuel sold in Australia adheres to the stipulated quality standards. Notably, the Act allows for variations and exemptions under specific conditions, as evidenced by the approval granted to Muranno Group Pty Ltd, trading as Panta Distribution Australia. This approval, which allows for the supply of petrol with higher levels of ethanol and MTBE for motor sport activities, is valid until 30 June 2023 and includes stringent conditions to mitigate environmental and health risks. The Act also allows for the extension or restriction of its application through subordinate instruments, which can include determinations and approvals that further define the operational scope and conditions under which the Act is implemented.

Key Provisions

The primary sections of the Fuel Quality Standards Act 2000 (the Act) relevant to this notice include section 13, which allows the Minister to grant an approval for the supply of petrol that does not comply with the standards set out in the Fuel Quality Standards (Petrol) Determination 2019 (2019 Determination) for specified purposes. Section 13A(1) and (2) govern the commencement and duration of such approvals, while section 17D(1) and (3) allow for the variation of these approvals, subject to consultation with the Fuel Standards Consultative Committee and consideration of specific criteria. The Act also mandates that any variation must be consistent with environmental, occupational, and public health and safety standards, as well as consumer interests and economic impacts (sections 15(1) and 17D(3)). Pursuant to the Act, Muranno Group Pty Ltd, trading as Panta Distribution Australia, is granted an approval to vary the 2019 Determination, allowing them to supply petrol with higher levels of ethanol and MTBE for specific motor sport activities. This approval imposes several obligations on Muranno Group Pty Ltd. They must ensure that the petrol supplied under this approval is not used on freshwater lakes or waterways, and they must label the containers accordingly. Furthermore, any spills must be contained and disposed of in a manner that protects groundwater. The company must also provide safe handling information with the fuel and ensure that the volumes supplied are limited to minimise health and safety risks. The approval also includes a list of regulated persons who are subject to the terms and conditions of the approval. The Act outlines various consequences for non-compliance with its provisions. Breaches of the conditions set out in the approval may result in enforcement actions by the relevant authorities. Under section 17E of the Act, any person who contravenes a condition of an approval is liable to a civil penalty not exceeding the greater of $11,000 or three times the benefit derived from the contravention. Additionally, the Minister may apply to the Federal Court for an order requiring compliance with the Act or its regulations. Failure to comply with such an order is a criminal offence, with penalties including fines of up to $66,000 for individuals and $330,000 for bodies corporate, as stipulated under section 25 of the Act. These penalties serve as deterrents to ensure adherence to the legislative requirements and the protection of public and environmental health.

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Area of Law
Environmental Law
Instrument
Gazette Notice
Concepts
Reporting & Disclosure Obligations
Enforcement Powers
Regulatory Standards
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Fuel Quality Standards

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.