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Oilcode to deliver a fairer petrol market.

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Media Release The Hon Ian Macfarlane, MP Minister for Industry, Resources and Tourism

March 30 2006

Oilcode to deliver a fairer petrol market

The Australian Government is today proceeding with legislative reform of the retail petroleum industry and Federal Industry Minister, Ian Macfarlane, will introduce the Petroleum Retail Legislation Repeal Bill into Parliament.

The Bill will repeal the outdated Petroleum Retail Marketing Sites Act 1980 and the Petroleum Retail Marketing Franchise Act 1980 and enable the Government to mandate an industry code of conduct, the Oilcode.

“The Bill is the first step in long awaited reforms for this sector leading to a mandatory national code which will give smaller operators greater protection, through a fairer disputes resolution system,” said Mr Macfarlane.

“The Oilcode will be a more effective regulatory regime, giving all industry players the freedom to respond to changing conditions in the retail petroleum market without reducing levels of competition.”

“It has been developed in consultation with the industry to streamline the regulatory framework for the retail petroleum industry, provide greater transparency of pricing and remove structural restrictions on competition,” he said.

The Oilcode provides: • standard contractual terms and conditions for re-selling agreements between wholesale suppliers and retailers,; • a national approach to terminal gate pricing arrangements; and • a low-cost, alternative dispute resolution scheme.

The Sites and Franchise Acts have become redundant over time as a result of the entry of large independent chains and alliances between the oil majors and supermarket retailers. Legislative repeal will enable the major oil companies to determine the most efficient arrangements for the sale of their products.

“Maximum competition remains the greatest guarantee of the lowest priced petrol and that means allowing the four majors and a healthy independent sector to compete with the supermarkets, which currently have substantial market share.”

“Some special interests have long opposed these reforms and in doing so are threatening all Australian motorists with higher petrol prices,” said Mr Macfarlane.

More information on the Oilcode can be found at:

Kirsty Boazman Media Adviser to Ian Macfarlane Minister for Industry, Tourism & Resources (02) 6277 7580 or 0412 171 444