Petroleum Products (Terminal Gate Pricing) Act 2000

i Petroleum Products (Terminal Gate Pricing) Act 2000 Act No. 71/2000 TABLE OF PROVISIONS Section Page 1. Purpose 1 2. Commencement 1 3. Definitions 2 4. Declaration of suppliers and classes of petroleum products 3 5. Determination of terminal gate price 3 6. Price of sale or supply 5 7. Availability of price information 5 8. Offence relating to price of sale or supply 7 9. Requirement to supply 7 10. Declared suppliers to produce documents and answer questions 8 11. Application of Fair Trading Act 1999 8 12. Offences by bodies corporate 8 13. Regulations 9 ═══════════════ ENDNOTES 10 -- 1 of 11 -- 1 Petroleum Products (Terminal Gate Pricing) Act 2000† [Assented to 21 November 2000] The Parliament of Victoria enacts as follows: 1. Purpose The purpose of this Act is to require the determination of terminal gate prices for petroleum products. 2. Commencement (1) Subject to sub-section (2), this Act comes into operation on a day to be proclaimed. Victoria No. 71 of 2000 -- 2 of 11 -- Act No. 71/2000 Petroleum Products (Terminal Gate Pricing) Act 2000 2 (2) If this Act does not come into operation before 1 December 2001, it comes into operation on that day. 3. Definitions In this Act— "automotive gas" means liquefied petroleum gas used or intended to be used for automotive purposes; "declared supplier" means a declared supplier under section 4; "Director" means the Director within the meaning of the Fair Trading Act 1999; "distributor" means a person who carries on a business of distributing petroleum products; "GST" has the same meaning as in the A New Tax System (Goods and Services) Act 1999 of the Commonwealth; "petroleum product" means motor spirit, diesel or automotive gas; "retailer" means a person who carries on a business of selling or supplying petroleum products by retail; "supplier" means any person who carries on a business of— (a) refining or importing petroleum products for the purposes of sale or supply; or (b) operating a fuel supply terminal; or (c) supplying petroleum products by wholesale to distributors or retailers; s. 3 -- 3 of 11 -- Act No. 71/2000 Petroleum Products (Terminal Gate Pricing) Act 2000 3 "terminal gate price" means a price determined under section 5(1) as varied from time to time under section 5(2). 4. Declaration of suppliers and classes of petroleum products The Governor in Council may, by Order published in the Government Gazette— (a) declare a supplier to be a declared supplier for the purposes of this Act; and (b) declare a class of petroleum products to be a declared class of petroleum products for the purposes of this Act. 5. Determination of terminal gate price (1) A declared supplier must, within 14 days after the commencement of this Act, determine a price "(the terminal gate price)" per litre for the sale or supply of each declared class of petroleum products sold or supplied by the declared supplier. Penalty: 10 000 penalty units. (2) Subject to sub-section (3), a declared supplier may at any time vary the terminal gate price of a declared class of petroleum products. (3) A declared supplier must not vary the terminal gate price of a declared class of petroleum products more than once in any 24 hour period. Penalty: 10 000 penalty units. (4) A terminal gate price must be determined by adding the following together— (a) the landed international product price of the petroleum products determined in accordance with sub-section (5); and s. 4 -- 4 of 11 -- Act No. 71/2000 Petroleum Products (Terminal Gate Pricing) Act 2000 4 (b) the excise and other taxes payable by the supplier in respect of the petroleum products; and (c) the margin determined in accordance with sub-section (7); and (d) any GST payable on the total amount determined under paragraphs (a), (b) and (c). (5) The landed international product price of petroleum products must be determined in accordance with criteria from time to time determined by the Governor in Council by Order published in the Government Gazette. (6) An Order under sub-section (5) may— (a) leave any matter to be determined by the Director or any other person; and (b) apply, adopt or incorporate, wholly or partially or as amended in the Order, the provisions of any document issued or published by any body whether— (i) as issued or published at the time the Order is made or at any time before then; or (ii) as amended from time to time. (7) The margin for petroleum products is an amount determined by the supplier which represents a reasonable return to the supplier on the cost of the establishment and operation of the terminal from which the petroleum products are supplied. (8) The terminal gate price must not include any amount representing all or any of the following— (a) a discount; (b) a rebate; (c) the cost of transport services; s. 5 -- 5 of 11 -- Act No. 71/2000 Petroleum Products (Terminal Gate Pricing) Act 2000 5 (d) the cost of delivery services; (e) the cost of credit services; (f) the cost of brand fees; (g) the cost of provision of equipment; (h) any return on assets owned by the declared supplier at a retail site for the sale or supply of petroleum products. 6. Price of sale or supply The price at which a declared supplier sells or supplies petroleum products of a declared class is to be an amount determined by— (a) adding to the current terminal gate price for those petroleum products any amount charged by the supplier for— (i) transport services; and (ii) delivery services; and (iii) credit services; and (iv) brand fees; and (v) the provision of equipment; and (b) deducting from the total determined under paragraph (a) any discount or rebate provided by the declared supplier for that sale or supply. 7. Availability of price information (1) A declared supplier must publish in the prescribed manner the terminal gate price determined by the supplier for petroleum products of a declared class and any variation of that price. Penalty: 5000 penalty units (2) A declared supplier must make available to any distributor or retailer, on request, details of the s. 6 -- 6 of 11 -- Act No. 71/2000 Petroleum Products (Terminal Gate Pricing) Act 2000 6 charges for any optional services provided by the declared supplier in relation to the sale or supply of a declared class of petroleum products, including transport services, delivery services, credit services, brand fees and provision of equipment. Penalty: 5000 penalty units. (3) A declared supplier who is the owner or lessor of a retail site for the sale of petroleum products may from time to time determine an amount representing a return on its asset in that site to be paid by the retailer at that site in addition to the terminal gate price for the sale or supply of petroleum products of a declared class. (4) A declared supplier must make available to a retailer, on request, any current amount determined by the declared supplier under sub- section (3) in respect of that retailer. Penalty: 5000 penalty units. (5) A declared supplier who sells or supplies a load of petroleum products of a declared class must include in any invoice for that sale or supply details of— (a) the current terminal gate price applying in respect of that load; and (b) any discounts or rebates provided by the supplier in respect of that load; and (c) any charges determined under sub-section (2), applying in respect of that load; and (d) if an amount is determined under sub-section (3) on a per litre basis, any amount so determined applying to that load. s. 7 -- 7 of 11 -- Act No. 71/2000 Petroleum Products (Terminal Gate Pricing) Act 2000 7 Penalty: 5000 penalty units. 8. Offence relating to price of sale or supply (1) A declared supplier must not sell or supply petroleum products of a declared class to a distributor or retailer at a price determined in any manner otherwise than in accordance with section 6. Penalty: 10 000 penalty units. (2) This section does not apply to a sale or supply under a contract entered into before 1 November 2000. (3) A provision of any contract for the sale or supply of petroleum products of a declared class which is entered into on or after 1 November 2000 is void to the extent that it is inconsistent with this section. 9. Requirement to supply (1) Subject to sub-section (2), a declared supplier must not refuse to supply petroleum products of a declared class to a distributor or retailer. Penalty: 10 000 penalty units. (2) A declared supplier may refuse to supply petroleum products if— (a) the supplier has notified the Director in the prescribed manner that there is a shortfall in the availability of the petroleum products and that to comply with sub-section (1) would hinder the supplier's ability to comply with its contracts with its customers; or (b) the load to be supplied is less than 35 000 litres; or (c) it would be unsafe or in contravention of any other Act or law to supply that load; or s. 8 -- 8 of 11 -- Act No. 71/2000 Petroleum Products (Terminal Gate Pricing) Act 2000 8 (d) it is not the practice of the supplier to supply petroleum products of that class at the time requested. 10. Declared suppliers to produce documents and answer questions For the purpose of monitoring compliance with this Act or the regulations, the Director may require a declared supplier at a time and place specified by the Director— (a) to answer orally or in writing any questions put by the Director relating to the declared supplier's business as a declared supplier; (b) to supply orally or in writing information required by the Director relating to that business; (c) to produce to the Director specified documents or documents of a specified class relating to that business. 11. Application of Fair Trading Act 1999 Part 10 of the Fair Trading Act 1999 (except section 121) extends and applies (with any necessary modifications) to this Act as if any reference in that Part to the Fair Trading Act 1999 were as reference to this Act and as if section 10 of this Act were included in that Part. 12. Offences by bodies corporate (1) If a body corporate contravenes any provision of this Act, each officer of the body corporate is deemed to have contravened the same provision if s. 10 s. 12 -- 9 of 11 -- Act No. 71/2000 Petroleum Products (Terminal Gate Pricing) Act 2000 9 the officer knowingly authorised or permitted the contravention. (2) A person may be proceeded against and convicted under a provision in accordance with sub-section (1) whether or not the body corporate has been proceeded against under that provision. (3) Nothing in this section affects any liability imposed on a body corporate for an offence committed by the body corporate against this Act. 13. Regulations The Governor in Council may make regulations for or with respect to— (a) the keeping of records for the purposes of this Act; and (b) any other matter or thing required or permitted by this Act to be prescribed or necessary to be prescribed to give effect to this Act. ═══════════════ -- 10 of 11 -- Act No. 71/2000 Petroleum Products (Terminal Gate Pricing) Act 2000 10 ENDNOTES † Minister's second reading speech— Legislative Assembly: 6 September 2000 Legislative Council: 15 November 2000 The long title for the Bill for this Act was "to require the determination of terminal gate prices for petroleum products and for other purposes." Endnotes -- 11 of 11 --