Notice under section 17A of the Fuel Quality Standards Act 2000 for variation of the Fuel Quality Standards (Petrol) Determination 2024 - NX1 Racing Fuels Pty Ltd (Expiry 30 June 2025)

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

Legislation au C2024G00433 In force Gazette

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BRANCH HEAD, LIQUID FUELS BRANCH

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 (PETROL) DETERMINATION 2024
- NX1 RACING FUELS PTY LTD (EXPIRY 30 JUNE 2025)

 

I, Jennifer Anne, Branch Head, Liquid Fuels Branch, 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

NX1 Racing Fuels Pty Ltd (ABN 68 650 145 761)

Period of operation

The approval comes into force on the date below and remains in force until 30 June 2025.

Details of the approval

This approval varies the fuel standard for petrol as set out in the Fuel Quality Standards (Petrol) Determination 2024 (Petrol Determination), so that fuels containing:

  • a maximum aromatics content in petrol of up to 70% v/v
  • a maximum olefins content in petrol of up to 40% v/v
  • a maximum oxygen content in petrol of up to 13% m/m

is taken to comply with the relevant parameters specified in the Petrol Determination in respect of the supply of specialised racing fuels until 30 June 2025. 

Summary of reasons for the approval

Having consulted with the Fuel Standards Consultative Committee as required by section 24A of the Act, and after considering the criteria in section 15 of the Act, I have granted the approval to the listed approval holder for the following reasons:

a)      The protection of the environment

The fuel subject to this approval is supplied and used in small quantities for motor sport activities. In this context, higher levels of ethanol, oxygen and aromatics are not expected to impact significantly on ambient air quality.

Motorsport events have many protocols in place to reduce environmental impacts. The fuel area is managed using environmental fuel spill kits, mats, bunding and other equipment to reduce any risk of impact to the environment. It is therefore expected that permitting the supply of the fuel covered by this approval for motorsport activities will not have an adverse effect on the environment.  

The fuel is expensive compared with normal fuels available to the public and the price provides a strong disincentive for any waste, misuse, or spillage.

It is therefore not expected that permitting the supply of the fuel covered by this approval for motor sport activities will have an adverse effect on the environment. 

b)     The protection of occupational and public health and safety

The fuel is not likely to have a significant impact on the health and safety of users as the volume of fuel used is low and confined to racing events. The fuel will be used by a small number of competitors and no contact with the general public is expected.

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.

Each racing category is managed by industry bodies that set homologation for their events. These set the allowable specifications of the fuel for each racing type. Without the supply of these racing fuels, many motorsport events would no longer be possible in Australia. 

Most of the motorsport industry have engines that are not able to safely operate on Australian fuel at retail pump sites, compliant under the Act. A large percentage of these cars and engines are from overseas and are built and manufactured to the international fuel specifications set by international racing organisations like the Fédération Internationale de l'Automobile (FIA). Without the supply of many of these fuels, these motorsport industries would cease to exist. 

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.

 

 

………………………………………………………………………….

 

Jennifer Anne

Branch Head, Liquid Fuels Branch 

25 June 2024

 

 

Overview

The Fuel Quality Standards Act 2000 was enacted to regulate the quality of fuel sold in Australia, aiming to protect the environment, public health, and safety, as well as to support economic and regional development. This legislation was introduced to address the need for quality control in fuel to prevent environmental degradation and health hazards, and to ensure that fuel specifications meet the necessary standards for consumer use and industry. The Act is administered by the Parliament of Australia and its policy objectives include the promotion of cleaner fuels that reduce air pollution, safeguarding public health and safety, and fostering economic growth through regulated fuel supply. The Act allows for the variation of fuel quality standards under specific conditions, as demonstrated in the recent notice by the Branch Head of the Liquid Fuels Branch, Jennifer Anne, which approves the supply of specialised racing fuels under certain conditions until 30 June 2025, balancing the needs of the motorsport industry with environmental and safety considerations.

Scope and Application

The Fuel Quality Standards Act 2000 applies to fuel standards for petrol and other liquid fuels within the Commonwealth of Australia. This Act is designed to ensure the quality of fuel supplied within Australia to protect the environment, public health, and safety, as well as to cater to consumer interests and economic development. The Act regulates the quality of petrol and other fuels by setting standards and parameters through the Fuel Quality Standards Determination, which can be varied to accommodate specific circumstances such as the supply of specialised racing fuels. The approval granted to NX1 Racing Fuels Pty Ltd under section 13 of the Act allows for variations in the standard petrol quality for the supply of specialised racing fuels, which includes a maximum aromatics content of up to 70% v/v, a maximum olefins content of up to 40% v/v, and a maximum oxygen content of up to 13% m/m, until 30 June 2025. This approval is subject to specific conditions and is limited to the use in motorsport activities where environmental impacts are controlled through established protocols and equipment. The decision to grant this approval was made in consultation with the Fuel Standards Consultative Committee and considers various criteria such as environmental protection, occupational and public health and safety, consumer interests, and economic development, ensuring that the supply of these specialised fuels will not have an adverse effect under the specified conditions.

Key Provisions

The main sections of the legislation concern the approval of the variation of fuel standards for petrol, as specified in the Fuel Quality Standards (Petrol) Determination 2024. Section 13 of the Fuel Quality Standards Act 2000 (the Act) allows for such variations, and this approval is granted under that section. The approval pertains to NX1 Racing Fuels Pty Ltd, which is authorised to supply petrol containing specific maximum levels of aromatics, olefins, and oxygen for motor sport activities until 30 June 2025. This variation permits the petrol to contain up to 70% aromatics, 40% olefins, and 13% oxygen by mass/mass (section 17A of the Act). The obligations imposed by this legislation on NX1 Racing Fuels Pty Ltd include adhering to the conditions outlined in the approval. This includes ensuring that the petrol supplied complies with the specified parameters and that it is used solely for motor sport activities. The company must also implement appropriate measures to mitigate any environmental impact, such as using spill kits, mats, bunding, and other equipment to manage potential spills. Additionally, the fuel must be supplied in sealed containers of up to 200 litres, and safe handling information must be provided to users. The approval also mandates that the fuel should only be used by a limited number of competitors at widely dispersed locations, thereby minimising health and safety risks. The legislation also outlines potential consequences for breaches of the approval terms. Under section 18 of the Act, any failure to comply with the terms of the approval may result in civil or criminal penalties. While the specific penalties are not detailed in the text, breaches of fuel quality standards can lead to fines and other sanctions. The severity of the penalties may depend on the nature and extent of the breach, as well as any resulting harm to the environment or public health and safety. It is important for NX1 Racing Fuels Pty Ltd to strictly adhere to the conditions set forth to avoid any legal repercussions.

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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.