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Wholesale Petrol Temperature Compensation
The Trade Measurement Act 1993 (SA) ensures consistent measurement in trade and commerce. Australian State and Territory Governments have agreed to introduce new laws to regulate the temperature at which automotive petrol and diesel fuel is measured for sale at refineries and terminals.In South Australia the regulation came into effect on 1 December 2002. Under the regulation oil companies, fuel importers and distributors must calculate the price of automotive petrol and diesel sold wholesale from refineries and terminals and delivered to resellers at the volume of the fuel measured at 15 degrees Celsius.
Purpose
The aim of the regulation is to improve certainty and transparency in the measurement and wholesale pricing of petroleum and diesel measured for sale at refineries and terminals in South Australia.15 degrees Celsius is the Australian Standard Temperature for measuring liquid petroleum fuels.
Like all liquids, petroleum fuels expand when heated and contract when cooled. Fuel at refineries and terminals is sometimes loaded and measured at high temperatures. If this did occur, resellers (distributors and retailers) may have less fuel available for resale once it has been delivered and cooled in storage. The new regulation provides for fuel to be volume corrected in certain sales and deliveries. In turn, retailers and distributors will be able to buy fuel at a price which is a better reflection of its volume when measured at 15 degrees Celsius.
Application of the Regulation
The regulation applies to petroleum fuels used for automotive purposes and includes:- all petrol (lead replacement petrol, regular unleaded petrol and premium unleaded petrol); and
- all diesel fuel such as automotive distillate.
Fuel resellers who buy fuel that is delivered directly from a refinery or a terminal will benefit from the regulation. This includes distributors and retailers.
The regulation applies to wholesale sales where the fuel is delivered directly from:
- an oil refinery;
- refinery connected terminal;
- seaboard terminal; or
- associated facilities described in the regulation as 'primary storage facilities'.
Fuel that is delivered directly from a refinery or terminal to a retailer's site must be volume corrected to 15 degrees Celsius. The regulation requires that this occurs regardless of whether the fuel was purchased from one of the major oil companies, a fuel importer or a distributor.
Enforcement
The Trade Measurement Section of the South Australian Office of Consumer and Business Affairs will be working with refineries and terminals to monitor compliance with the regulation. Inspectors will regularly inspect measuring equipment, invoices and delivery dockets.As this regulation does not require temperature correction by retailers, there should be no effect on consumers or motorists. However, fuel resellers, including distributors and retailers, who buy fuel which is delivered directly from a refinery should be receiving volume-corrected fuel. If you are not receiving volume corrected fuel and believe that you should be or if you have concerns about invoices or delivery dockets, suppliers should be contacted in the first instance. If the concern is not resolved to your satisfaction contact us
Visit http://www.parliament.sa.gov.au for a copy of the regulation.
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Information on copyright for the Office of Consumer and Business Affairs website is provided on behalf of South Australia Central http://www.sacentral.sa.gov.au/site/page.cfm?u=60
Disclaimer
Information on the disclaimer for the Office of Consumer and Business Affairs website is provided on behalf of South Australia Central http://www.sacentral.sa.gov.au/site/page.cfm?u=61
Privacy
The South Australian Office of Consumer and Business Affairs (OCBA) is committed to protecting your privacy and the confidentiality of your personal information, consistent with the South Australian Government's Information Privacy Principles. If you would like to view the full privacy statement please visit: http://www.ocba.sa.gov.au/privacy.html
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If you wish to provide feedback on the Office of Consumer and Business Affairs website please contact the Webmaster via email mailto:webmaster@agd.sa.gov.au
Accessibility
Information on accessibility for the Office of Consumer and Business Affairs website can be viewed at: http://www.ocba.sa.gov.au/accessibility.html