The ACCC has released a draft determination proposing to grant authorisation to enable diesel exhaust fluid (also known as ‘AdBlue’) manufacturers and other industry participants to collaborate, in conjunction with the Commonwealth Government, to obtain supply of refined urea, a key ingredient in AdBlue, and prioritise distribution of refined urea and AdBlue should shortages emerge.
When the application for authorisation was lodged in December 2021, there was a global shortage of refined urea and Australian AdBlue manufacturers were facing difficulties securing supply. This shortage risked disrupting a number of sectors reliant on modern diesel engines that require AdBlue.
On 22 December 2021, the ACCC granted urgent interim authorisation, with conditions, to allow the arrangements to proceed while the ACCC considers the substantive application. Since then, the Commonwealth Government and AdBlue industry participants have implemented a range of measures to address the shortage, including coordination under the interim authorisation. As a result, the supply concerns about AdBlue have abated.
The ACCC considers that enabling coordination by AdBlue industry participants will continue to assist in managing and mitigating any risks of an AdBlue supply shortage and is likely to result in significant public benefits. The ACCC also considers any public detriment is likely to be limited.
The ACCC proposes to grant authorisation until 1 December 2022. The ACCC proposes to impose the same conditions as those that apply to the interim authorisation, which will provide the ACCC and the Commonwealth Government with certainty, oversight and transparency regarding the coordination that occurs.
The ACCC now invites submissions in relation to the draft determination by 25 March 2022. A copy of the ACCC’s draft determination is available on the ACCC’s public register at: AdBlue Manufacturers.