Petroleum Retail Marketing Sites Regulations (Amendment) 1997 No. 211
EXPLANATORY STATEMENT
STATUTORY RULES 1997 No. 211
Issued by the authority of the Minister for Industry, Science and Tourism
Petroleum Retail Marketing Sites Act 1980
Petroleum Retail Marketing Sites Regulations (Amendment)
The Act is designed to restrain vertical integration by the major oil companies in order to encourage competition between resellers at the retail level, by establishing quotas on the number of 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 temporarily extend the site quota for BP Australia Limited (from its current allocation of 87 sites to 105 sites for the period 1 April 1996 to 31 July 1997) and for Mobil Australia Limited (from its current allocation of 87 sites to 116 sites for the period 1 April 1996 to 30 September 1997).
The amending Regulations amend the principal Regulations as follows:
Regulation 1 provides that the operative part of this amendment (Regulation 3) commences retrospectively to 1 April 1996;
Regulation 2 states that the Petroleum Retail Marketing Sites Regulations are amended as set out in these amending Regulations.
Regulation 3 specifies the quotas applicable to BP Australia Limited for the period 1 April 1996 to 31 July 1997, and Mobil Australia Limited for the period 1 April 1996 to 30 September 1997, and the quotas to apply after those dates.
Regulation 4 preserves rights under section 12 of the Act in the period since 1 April 1996, in order to comply with section 48 of the Acts Interpretation Act 1901.
Overview
The Petroleum Retail Marketing Sites Regulations (Amendment) 1997 No. 211, issued under the authority of the Minister for Industry, Science and Tourism, were enacted to address the problem of vertical integration by major oil companies in the Australian market, which was seen as a barrier to competition among resellers at the retail level. This amendment to the Petroleum Retail Marketing Sites Regulations 1980 introduces temporary extensions to the site quotas for BP Australia Limited and Mobil Australia Limited, effectively allowing BP to operate up to 105 sites and Mobil up to 116 sites until specified dates in 1997. The overarching policy objective of the Act is to promote competition in the retail petroleum market by limiting the number of outlets that major oil companies can directly operate. This amendment aims to temporarily adjust the quota allocations to accommodate specific operational needs while continuing to restrain undue market dominance by these companies.
Scope and Application
The Petroleum Retail Marketing Sites Regulations (Amendment) 1997 No. 211 applies to the Petroleum Retail Marketing Sites Act 1980, specifically targeting major oil companies such as BP Australia Limited and Mobil Australia Limited. This legislation is aimed at regulating the number of retail outlets that these companies can directly operate, with the overarching goal of restraining vertical integration and fostering competition in the petroleum retail market. The amendment extends the site quota for BP Australia Limited from 87 to 105 sites for the period from 1 April 1996 to 31 July 1997 and for Mobil Australia Limited from 87 to 116 sites for the period from 1 April 1996 to 30 September 1997. This temporary extension is intended to allow for certain market conditions while still maintaining the core principles of the Act. The geographic reach of these regulations is national, applying across Australia, and the specified amendments to quotas are detailed in subordinate instruments as outlined in the proposed Regulations.
Key Provisions
The Petroleum Retail Marketing Sites Regulations (Amendment) 1997 No. 211 amends the Petroleum Retail Marketing Sites Regulations to extend the site quotas for BP Australia Limited and Mobil Australia Limited temporarily. According to Regulation 3, BP Australia Limited's quota is increased from 87 sites to 105 sites for the period 1 April 1996 to 31 July 1997, while Mobil Australia Limited's quota increases from 87 sites to 116 sites for the period 1 April 1996 to 30 September 1997. The amendment also specifies the quotas to apply after those dates. Regulation 1 states that the amendment commences retrospectively to 1 April 1996, while Regulation 2 states that the principal Regulations are amended as set out in the amending Regulations. Regulation 4 preserves rights under section 12 of the Act in the period since 1 April 1996 to comply with section 48 of the Acts Interpretation Act 1901.
The Petroleum Retail Marketing Sites Act 1980 and the Regulations impose obligations on BP Australia Limited and Mobil Australia Limited to comply with the site quotas set out in the Regulations. The Act aims to restrain vertical integration by major oil companies to encourage competition between resellers at the retail level. The Regulations provide for the temporary extension of site quotas to ensure that the companies can continue to operate during the amendment period. The obligations include providing information and data to the Minister for Industry, Science and Tourism, and complying with the site quotas set out in the Regulations.
The Petroleum Retail Marketing Sites Regulations (Amendment) 1997 No. 211 provides for offences and penalties for non-compliance with the Regulations. According to section 40 of the Act, a person who contravenes a provision of the Regulations is liable to a penalty of up to $50,000 for each day of the contravention. The penalty is doubled if the contravention is continuing. Additionally, the court may order the person to do any act or thing that it considers appropriate, including the closure of the non-compliant site. The Regulations also provide for civil and criminal consequences for breach, including maximum penalties where stated.