The Oilcode came into effect on 1 March 2007 as a prescribed industry code of conduct under the Trade Practices Act 1974. The Oilcode forms part of the Australian Government’s Downstream Petroleum Reform Package.
This package included the:
repeal of the 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.
Section 3(2) of the Oilcode requires that a review of the Oilcode be undertaken after it has been in operation for 12 months. The Department of Resources, Energy and Tourism began this review in March 2008, a process that also included the release of an issues paper in April 2008 and a public consultation process to seek stakeholder views on the Oilcode. The ACCC made a submission to the review.
The Minister for Resources and Energy, the Hon. Martin Ferguson, released the Oilcode Review report on 24 August 2009. The report contains 11 recommendations, which the government will consider in consultation with interested parties before finalising its response. The government called for interested parties to provide comments on the recommendations by 30 October 2009.
Purpose of the Oilcode
The purpose of the Oilcode in general terms is to regulate the conduct of suppliers, distributors, and retailers in the downstream petroleum retail industry.
The Oilcode aims to:
improve transparency in wholesale pricing and provide better access to declared petroleum products, as defined in the Oilcode, at a published terminal gate price (TGP)
assist industry participants to make more informed decisions when entering, renewing or transferring a fuel re-selling agreement by requiring the disclosure of specific information
improve the operating environment for all industry participants by providing access to a cost-effective and timely dispute resolution scheme as an alternative to litigation.
