Summary
The review of the Petroleum Products Specifications Regulations has identified that a major upgrade of the specifications is justifiable to ensure our petrol and diesel quality standards are in line with international trends. These trends are towards specifications that deliver better vehicle performance and environmental outcomes. If our specifications do not change, New Zealand may not be able to obtain the newer technology, more fuel-efficient and environmentally friendly vehicles now entering international markets. However, timing issues, industry competitiveness and costs need to be considered alongside the advantages to be gained from better performance, and higher health and environmental standards. A full list of the proposed amendments is summarised in the tables in Changes to Petrol Specifications under Consideration.
The most significant changes proposed to the petrol specifications include:
- Progressively reducing maximum benzene levels from 4.2% to 1% by volume.
Benzene is a known carcinogen. Our allowable limits are high compared to other international standards. - Progressively reducing maximum sulphur levels from 500 parts per million (ppm) to 50 ppm.
This amendment will codify current practice and facilitate the introduction of advanced engine technologies. - Prohibiting the use of MTBE in petrol with a contamination limit of 1% by volume.
MTBE mixes readily with water and has been known to taint groundwater at very low concentrations. This has led to its ban in parts of the United States. - Allowing ethanol blends up to 10%, subject to a testing and approval process.
Currently ethanol blends are not provided for. Many countries allow ethanol blends. A precautionary approach is proposed to ensure ethanol blended petrol meets New Zealand motoring requirements. - Prohibiting the addition of MMT (manganese).
This is not currently used. The automotive industry strongly opposes it as an additive. - Specifying and progressively reducing maximum levels of olefins from 25% by volume to 18%.
Olefin levels are currently not regulated. Olefins contribute to smog forming emissions and formation of toxic dienes. - Reducing maximum aromatics level in regular grade petrol to 40% by volume and progressively reducing maximum aromatics level in premium grade petrol from 48% to 42% by volume.
This is a means of limiting exhaust emissions of hydrocarbons. - Reducing maximum lead levels from 13 mg/litre to 5 mg/litre.
The most significant changes proposed to the diesel specifications include:
- Progressively narrowing the allowable density range.
This will enable improved engine performance and will align New Zealand with international standards. - Progressively increasing the cetane number from 45 to 51.
This will improve engine performance, decrease nitrogen oxide and possibly carbon monoxide and hydrocarbon emissions, and decrease fuel consumption. - Progressively reducing maximum sulphur levels from 3,000 ppm to 50 ppm.
This will align us with international trends and enable the use of new technology vehicles with emissions control systems requiring very low sulphur levels. Reductions to 500 ppm will reduce particulate emissions from existing vehicles. - Specifying maximum levels of PAHs to 11% by mass from two to three years hence.
Levels of PAHs are not currently regulated. Limiting PAHs is desirable for health benefits and is in line with international trends. - Adding a new filterability test.
This will help to avoid the filter clogging problems experienced by diesel users in May-June this year.
General Changes Proposed to Regulations
- Inclusion of a general clause requiring that all fuel be "fit for purpose.
This will make it clear that a primary objective of the Regulations is to ensure that fuel supplied is "fit for purpose" (refer Section 9.2). - Increase fines for non-compliance to $30,000 for an individual and $100,000 for a corporate body.
The maximum fine for non-compliant fuel is currently $10,000. This would change mean fine levels consistent with the Fair trading Act. This change would require an amendment to the Ministry of Energy Abolition Act (refer Section 9.4). - Requirement that fuel dispensers at retail service stations be clearly labelled.
This is to minimise the risk of misfuelling (refer Section 9.5). - "Boutique" grades of petrol must meet the octane ratings and other special properties advertised, as well as all other properties specified in the Regulations.
"Boutique" grades are those grades of petrol not marketed as regular or premium petrol (refer Section 9.5). - Revise the definition of additive.
Additives are allowed in petrol and diesel. The definition will clearly signal that additives are intended to improve fuel performance or fuel distribution (refer Section 9.7).
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