Petroleum Retail Marketing Sites Regulations (Amendment)

Overview

The Petroleum Retail Marketing Sites Regulations 1981, as amended by Statutory Rules 1981 No. 264, were enacted under the Petroleum Retail Marketing Sites Act 1980. This legislation was introduced to regulate the number of retail sites that could be operated by petroleum companies, thereby addressing a gap in the management of petrol station distribution and ensuring a balanced market presence. The regulations were made by the Governor-General, acting on the advice of the Federal Executive Council, reflecting the Federal government’s role in regulating commerce and consumer affairs. The policy objective of the amendment was to update and refine the regulatory framework governing the permitted number of retail sites for various petroleum corporations, ensuring compliance with legislative mandates and market conditions.

Scope and Application

The Petroleum Retail Marketing Sites Regulations 1981, made under the Petroleum Retail Marketing Sites Act 1980, apply specifically to the entities listed in the amended Schedule, namely Amoco Holdings Pty. Limited, Ampol Petroleum Ltd, The British Petroleum Company of Australia Limited, Caltex Oil (Australia) Pty. Limited, Esso Australia Ltd, Golden Fleece Petroleum Ltd, Mobil Oil Australia Limited, and Shell Australia Limited. These entities are regulated with respect to the number of retail sites they are permitted to operate, which varies depending on whether the assessment is within the second year after the commencement of the Act or thereafter. The amendment details the specific number of permitted sites for each corporation, reflecting the legislative intent to manage the distribution and operation of petroleum retail marketing sites. The regulations are applicable on a national level, governing the conduct of these corporations across Australia. However, the regulations do not extend to entities not listed in the amended Schedule and do not cover other petroleum marketing activities outside the scope of retail sites. The application of these regulations is further refined and potentially expanded through any subordinate instruments issued under the authority of the Petroleum Retail Marketing Sites Act 1980.

Key Provisions

The Petroleum Retail Marketing Sites Regulations 1981 (Amendment) fundamentally alter the schedule of the Petroleum Retail Marketing Sites Act 1980. Regulation 6 replaces the existing table specifying the number of permitted retail sites for various corporations with a new table (paragraphs 6(1), 6(2)). The new table lists each corporation, such as Amoco Holdings Pty. Limited, Ampol Petroleum Ltd, and others, along with the number of permitted retail sites for the second year after the commencement of the Act and thereafter (paragraph 6(3)). These amendments detail specific numbers of sites each corporation is allowed to operate, such as Amoco Holdings Pty. Limited being permitted 53 sites within the second year and 20 thereafter (paragraph 6(4)(i)). The amended regulations impose clear operational limits on the number of retail sites each prescribed corporation can maintain. For example, Ampol Petroleum Ltd is restricted to 16 sites within the second year and 5 thereafter (paragraph 6(4)(ii)). These obligations ensure compliance with the Act’s framework, which aims to regulate the number of petroleum retail sites to manage competition and market conditions effectively (paragraph 6(5)). The corporations must adhere to these numbers as specified in the amended schedule, failing which they may face legal repercussions. Failure to comply with the stipulated number of permitted retail sites can lead to significant consequences. The Petroleum Retail Marketing Sites Act 1980 provides for both civil and criminal penalties for breaches. Under section 11 of the Act, any corporation that operates more retail sites than permitted by the amended regulations can be subject to fines. The maximum penalty for a corporation is $10,000 per day for each site in excess of the permitted number (section 11(1), (2)). Additionally, individuals responsible for the breach, such as directors or managers, may also face personal penalties, including fines of up to $2,000 per day and imprisonment for up to two years (section 11(3)). These stringent measures are intended to enforce compliance and uphold the regulatory intent of the Act.