Oil Code of Conduct

The Oil Code of Conduct is a mandatory industry code under section 51AE of the Competition and Consumer Act 2010. Read the full legislative code here: Oil Code 

• It came into effect on 1 March 2007 and was revised and amended on 3 July 2012. The aims of the Oilcode are to:
  improve transparency in wholesale pricing and provide better access to declared petroleum products at a published terminal gate price (TGP)
• help industry participants make informed decisions when entering, renewing or transferring a fuel re-selling agreement through the disclosure of specific information
• provide access to a cost-effective and timely dispute resolution scheme as an alternative to litigation, see 

The Oil Code of Conduct is a pivotal regulatory framework governing the sale, supply, and purchase of declared petroleum products such as unleaded petrol and diesel in Australia. Enforced by the Australian Competition and Consumer Commission (ACCC), this mandatory code plays a crucial role in ensuring transparency, fairness, and competition within the petroleum industry.

Objectives of the Oil Code of Conduct

The primary goal of the Oil Code is to regulate the behavior of key players in the petroleum market, including fuel suppliers, distributors, and retailers. By doing so, it aims to foster a competitive environment that benefits both industry participants and consumers. The code outlines specific rights and responsibilities for all parties involved, creating a more balanced and equitable marketplace.

Key Provisions of the Oil Code

1. Daily Terminal Gate Price (TGP) Publication: One of the most significant requirements under the Oil Code is the mandatory publication of a daily Terminal Gate Price (TGP) by wholesalers of declared petroleum products. The TGP is essentially the wholesale price at which fuel can be purchased directly from a terminal, excluding additional costs like transport and taxes. By publishing this price daily, the code ensures transparency, allowing industry participants to make informed decisions about fuel purchases.
2. Regulation of Conduct Among Industry Participants: The Oil Code establishes rules for how fuel suppliers, distributors, and retailers interact with each other. This includes guidelines on supply agreements, pricing practices, and dispute resolution. By setting these standards, the code helps prevent anti-competitive behaviour, such as price-fixing or unfair contract terms, which could harm smaller businesses or consumers.
3. Rights and Responsibilities: The Oil Code clearly defines the rights and responsibilities of all parties involved in the petroleum supply chain. For example, suppliers must provide timely and accurate information regarding fuel quality and availability. Distributors and retailers, on the other hand, are obligated to adhere to the terms of their agreements and ensure that the fuel they supply meets the necessary standards.
4. Dispute Resolution Mechanism: To address conflicts that may arise between industry participants, the Oil Code includes a dispute resolution mechanism. This process is designed to be fair and efficient, providing a means for parties to resolve their differences without resorting to costly legal proceedings.

Impact on the Industry and Consumers

The Oil Code of Conduct has had a significant impact on the Australian petroleum industry. By promoting transparency and fair competition, the code has helped to stabilize fuel prices and ensure that consumers are not subjected to unfair pricing practices. Moreover, the requirement for wholesalers to publish the TGP daily has made it easier for smaller retailers and distributors to compete with larger players, contributing to a more diverse and competitive market.

For consumers, the Oil Code provides an added layer of protection by ensuring that the fuel they purchase is priced fairly and meets quality standards. Additionally, the transparency enforced by the code enables consumers to make better-informed decisions when purchasing fuel.