Petroleum Retail Marketing Sites Amendment Regulations 1999 (No. 1) 1999 No. 49
Explanatory Statement
Statutory rules 1999 No. 49
Issued by the authority of the Minister for Industry, Science and Resources
Petroleum Retail Marketing Sites Act 1980
Petroleum Retail Marketing Sites Amendment Regulations 1999 (No. 1)
Section 15 of the Petroleum Retail Marketing Sites Act 1980 (the Act) provides that the Governor-General may make regulations for the purposes of the Act.
Section 12 of the Act provides a person with the right to obtain an injunction when a prescribed oil company (oil company named in the regulations) operates above its quota. Section 12 is the only provision in the Act where a possibility of a private right exists.
The Act is designed to restrain vertical integration (ie. firms producing related goods and services in a supply chain) by the major oil companies, in order to encourage competition between resellers at the retail level. The Act establishes quotas on the number of retail outlets which each company may directly operate.
The Petroleum Retail marketing Sites Regulations (Amendment) ("the proposed Regulations") amend the Petroleum Retail marketing Sites Regulations ("the principal Regulations"), to allow a temporary increase in BP Australia Ltd's allocation from 87 to 102 sites for the period 1 July 1998 to 30 June 1999.
The term "retail site" is defined in Section 3, the Interpretation Section of the Act, as "premises at which motor fuel is sold by retail", in other words, a petrol station which sells petrol in retail trade.
The site increase is to operate retrospectively from 1 July 1998 to coincide with the date at which BP Australia Ltd exceeded its quota by being unable to divest itself of 15 excess retail sites in Victoria and will operate until 30 June 1999. These sites were acquired together with the 100 per cent ownership of distributor Woolman Petroleum Pty. A temporary increase form 87 to 102 was already approved by the Governor-General for the period 1 August 1997 to 30 June 1998.
The reason for increasing the allocation of sites from 87 to 102 is that BP Australia Ltd has been unable to sell off 15 excess. retail sites located in Victoria, where suitable buyers are lacking due to market uncertainty and increased competition.
The operative part of the amendment (regulation 3) commences retrospectively to 1 July 1998.
Subsection 48(2) of the Acts Interpretation Act 1901 (the Interpretation Act) provides that a retrospective regulation may not adversely affect the rights of a person (other than the Commonwealth or an authority of the Commonwealth).
The Attorney-General's Department is of the view that the right to obtain an injunction conferred by section 12 of the Act is unlikely to constitute a "right' for the purpose of section 48(2)(a) of the Interpretation Act. However, to ensure section 48 of the Interpretation Act is not infringed, a savings provision has been included (regulation 5) which preserves any rights existing under section 12 of the Act between the date the regulations are taken to have commenced and the date of their notification in the Gazette.
Overview
The Petroleum Retail Marketing Sites Amendment Regulations 1999 (No. 1) were introduced to address the issue of BP Australia Ltd's inability to divest 15 excess retail sites in Victoria, a situation arising from market uncertainty and increased competition. These regulations amend the Petroleum Retail Marketing Sites Regulations to allow a temporary increase in BP Australia Ltd's allocation from 87 to 102 sites for the period 1 July 1998 to 30 June 1999. This increase operates retrospectively from 1 July 1998 to coincide with the date at which BP Australia Ltd exceeded its quota. The primary objective of the Petroleum Retail Marketing Sites Act 1980, under which these regulations were enacted, is to restrain vertical integration by major oil companies, thereby encouraging competition between resellers at the retail level. The regulations were issued by the authority of the Minister for Industry, Science and Resources and include a savings provision to ensure compliance with the Acts Interpretation Act 1901.
Scope and Application
The Petroleum Retail Marketing Sites Amendment Regulations 1999 (No. 1) amends the Petroleum Retail Marketing Sites Regulations to address a specific situation involving BP Australia Ltd's quota of retail sites, allowing for a temporary increase from 87 to 102 sites. The Act itself is designed to curb vertical integration among major oil companies, particularly by limiting the number of retail outlets each company can operate directly, thereby fostering competition among resellers at the retail level. The Act applies to oil companies that are prescribed in the regulations and to retail sites, defined as premises where motor fuel is sold by retail, such as petrol stations. These regulations are specifically tailored to allow BP Australia Ltd an increased allocation for a period from 1 July 1998 to 30 June 1999 due to the company's inability to divest 15 excess retail sites in Victoria amid market uncertainty and heightened competition. The application of these regulations is retrospective to 1 July 1998, with a savings provision included to ensure the rights conferred under the Act are preserved, particularly the right to obtain an injunction when a company operates above its quota.
Key Provisions
The Petroleum Retail Marketing Sites Amendment Regulations 1999 (No. 1) introduce temporary amendments to the existing regulations under the Petroleum Retail Marketing Sites Act 1980, specifically for BP Australia Ltd. Regulation 3, the main operative section of the amendment, allows for an increase in the number of retail sites BP Australia Ltd can operate from 87 to 102, effective from 1 July 1998 to 30 June 1999. This adjustment aims to accommodate BP Australia Ltd’s inability to sell off 15 excess retail sites in Victoria due to market conditions. The amendment is intended to be retrospective, starting from 1 July 1998, to align with the period BP Australia Ltd already exceeded its quota, as previously approved for the period 1 August 1997 to 30 June 1998.
The Act imposes certain obligations on BP Australia Ltd, primarily to operate within the allocated quota of retail sites to prevent vertical integration and promote competition among resellers. By increasing BP Australia Ltd's quota temporarily, the Regulations ensure the company can continue operations without breaching the Act’s core purpose. The obligations extend to ensuring compliance with the Act’s provisions, including any retrospective application of the regulations, which must not adversely affect any existing rights of individuals under Section 12 of the Act. To safeguard against potential adverse effects, Regulation 5 includes a savings provision, preserving any rights under Section 12 from the effective date of the regulations until their notification in the Gazette.
In terms of enforcement and consequences for breach, the Petroleum Retail Marketing Sites Act 1980 provides for certain offences and penalties. However, the specific penalties for non-compliance with the Act or its regulations are not detailed within the provided text. Generally, the Act allows for legal action, including injunctions, to be pursued by individuals who find that an oil company operates above its prescribed quota. Such actions can be initiated under Section 12 of the Act, providing a private right to seek legal redress. While the exact penalties are not specified, they would typically include fines and potential further restrictions on the company's operations. The seriousness of the breach and its impact on market competition would influence the penalties imposed.