Small retail service stations could be big winners from a review of the Oilcode released today by the Minister for Resources and Energy, Martin Ferguson AM MP, at the launch of the newly revamped BP Terminal in Newcastle.
The statutory review of the Trade Practice (Industry Codes - Oilcode) Regulations 2006 makes
11 recommendations to improve protections for small businesses and the operation and effectiveness of the Dispute Resolution Scheme. In particular, the Oilcode Review recommends:
- Further disclosure by suppliers prior to entering into petroleum reselling agreements
- More clarity and certainty in relation to Dispute Resolution Scheme processes
- Measures to increase the use of collective bargaining provisions by independent service stations, resellers and commissioned agents under the Trade Practices Act 1974.
Minister Ferguson said: "The review found the Oilcode is working as intended but there is room for improvement. The Australian Government will carefully consider the review's recommendations in consultation with interested parties before finalising its response.
"One significant finding is that independent service stations, resellers and commissioned agents are not taking the opportunity to use collective bargaining provisions that could potentially lead to better wholesale pricing outcomes for them.
"In consultation with industry stakeholders, we will be looking hard at any barriers as well as measures we can take to increase the use of collective bargaining."
Minister Ferguson also released the ACIL Tasman report Petroleum Import Infrastructure in Australia. The report was commissioned after the ACCC recommended a comprehensive audit of Australia's existing import infrastructure capacity to meet current and future crude oil and petroleum product import requirements.
The import terminal audit concludes that existing infrastructure and planned investments will result in spare capacity emerging in all jurisdictions except the Northern Territory over the next two years.
Minister Ferguson said: "This is good news for Australian fuel consumers, meaning better access for imported petroleum products, therefore maintaining market competition into the future. The Government will now consider recommendations of the import terminal audit in the context of long-term supply and demand issues, through the Energy White Paper process. "
Minister Ferguson also commended BP on the recent improvements to its Newcastle Terminal. "The ability to receive direct shipments into Newcastle will reduce the reliance on the pipeline from Sydney and improve transport fuel security not only for people in the Newcastle region, but for the eastern Australian supply chain overall," he said.
The Oilcode Review and Import Terminal Audit are available for download from the Department of Resources, Energy and Tourism website at www.ret.gov.au.