ACCC issues guides and compliance manual to the Oilcode

The Australian Competition and Consumer Commission today issued material to assist the petrol wholesale, retail and distribution industry to understand its rights and responsibilities under the new Oilcode, which comes into effect today.

"The ACCC is responsible for administering the Oilcode which will regulates the conduct of industry participants," ACCC Chairman, Mr Graeme Samuel, said today.

"The Oilcode is binding on participants in the petrol wholesale, retail and distribution industry.

"It encourages greater transparency of terminal gate pricing and fuel re-selling agreements, greater certainty for industry participants regarding supply of petroleum products and tenure under agreements.  It provides an effective and relatively inexpensive way of resolving disputes that may arise between suppliers, distributors or retailers.

"It has been prescribed by the Australian government as a mandatory code of conduct under the Trade Practices Act 1974.

"The ACCC will promote compliance with the Oilcode and the Act through education, providing access to information and, where necessary, enforcement action."

After industry and other consultation, the ACCC has developed a number of education tools, which include:

• The guide to the Oilcode which gives guidance to industry participants about their rights and responsibilities under the Oilcode
• An overview of the Oilcode for fuel resellers, which provides industry participants who buy and on-sell declared petroleum products with an overview of their rights and responsibilities under the Oilcode
• The Oilcode compliance manual which gives guidance on how to comply with the Oilcode. It will also assist the industry to establish a framework for an effective compliance program which sets out minimum business conduct and disclosure requirements under the Oilcode
• The Oilcode – How does it affect you? (DVD) which provides industry participants with a broad overview of the purpose and features of the Oilcode in an audiovisual format
• ACCC Industry Codes website, www.accc.gov.au/industrycodes. The website is also a valuable source for industry participants to access regularly updated information relating to industry codes of conduct, including the Oilcode, and
• ACCC Oilcode Information Network – a free subscription network which provides current updates from the ACCC in relation to the Oilcode. The subscription form is available on the ACCC's website, www.accc.gov.au/industrycodes or call the ACCC Infocentre on 1300 302 502.

Background

On 1 March 2007 the Trade Practices (Industry Codes – Oilcode) Regulations 2006 came into effect, as prescribed by the Australian Government. It forms part of the Downstream Petroleum Reform Package comprising the:

• repeal of Petroleum Retail Marketing Sites Act 1980
• repeal of the Petroleum Retail Marketing Franchise Act 1980
• prescription of the mandatory Oilcode under s. 51AE of the Trade Practices Act 1974.

Once an industry code of conduct is prescribed by the Australian Government under the Act, the code has the force of law.