2. The Regulations
2.1 History
The distribution and sale of petrol and diesel in New Zealand was deregulated in 1988. Prior to that, retail prices and margins had been set by the government. Fuel quality specifications were set by agreement between the government, the oil industry and the motor vehicle manufacturers.
Deregulation created the opportunity for additional players to enter the market and it was considered that regulatory controls on the quality of diesel and petrol supplied and sold in New Zealand should be established. The purpose of these was to protect the interests of consumers and provide minimum standards covering fuel performance, safety and environmental effects.
Specifications for petroleum fuels were first promulgated in the Ministry of Energy (Petroleum Product Specifications) Regulations 1988, which came into effect on 1 January 1989. The basic structure of the regulations is still the same, with only a few changes over the last 12 years:
- 1994 - Changes to E70 limits (refer Section 7.1.3) following cold starting problems encountered with one particular shipment of imported fuel (which met the limits then current).
- 1994 - Amendments to require regular unleaded petrol to be supplied from 1 July 1995 and to phase out the supply of premium leaded petrol during 1996.
- 1995 - Replacement of the 1988 Regulations with the Petroleum Products Specifications Regulations 1995. This consolidated changes associated with the introduction of premium unleaded petrol (PULP) together with minor changes for regular grade petrol and for diesel.
- 1996 - Limits and test methods established for total aromatics levels in PULP, following difficulties which arose with the introduction of this grade (again related to fuel that met the limits then current).
- 1998 - Replacement of the 1995 Regulations with the Petroleum Products Specifications Regulations 1998 which came into force in October 1998, and are still current. Limits on total aromatics for both grades of petrol were harmonised and specific colour requirements for petrol were removed.
2.2 Scope
A full copy of the Petroleum Products Specifications Regulations 1998 is contained Appendix B. In summary, the Regulations cover the following:
| Clause | Content | Notes |
|---|
| 1 | Title and commencement | |
| 2 | Interpretation | "Diesel" means a refined petroleum distillate having a viscosity and distillation range intermediate between those of kerosene and light lubricating oil, whether or not it contains additives, intended for use as fuel in internal combustion engines ignited by compression. |
| | "Petrol" means a refined petroleum distillate, normally boiling within the limits of 30°C to 220°C, whether or not it contains additives, intended for use as a fuel in spark-ignition internal combustion engines. |
| | "Retail sale" means a sale to an end user who has no written supply agreement or written contract with the supplier in respect of the sale. |
| 3 | Requirements relating to fuel sold by retail | Petrol sold by retail sale must comply with all of the limits specified in Schedules 1 and 2 and diesel with all the limits specified in Schedule 3, except fuel which is to be used |
| | a) as an aviation fuel; or |
| | b) for motor car racing; or |
| | c) for powerboat racing and jet boats; or |
| | d) for motorcycle racing. |
| | (This Review has therefore not considered fuel intended for these uses). |
| 4 | Requirements relating to all fuel | "All fuel" must comply with specified limits only. For petrol, those limits are those for sulphur, lead, benzene and total aromatics; for diesel, only the limit for sulphur must be met. |
| | This clause effectively allows the supply of alternative specification fuel to end users who have written supply agreements or contracts (commonly referred to as commercial users). |
| | The uses that are listed as exclusions in Clause 3 also apply for all fuel. |
| 5 | Test procedures | Specifies requirements for sampling fuel for testing. |
| 6 | Sampling | Requires suppliers to allow samples of fuel to be taken or provide quality certification of a product. |
| 7 | Accreditation | Requires sampler/tester to be ISO accredited or equivalent. |
| 8 | Withdrawal of fuel from sale etc. | Distributor can be required to withdraw fuel from sale or supply |
| 9 | Offences | Specifies offences and a maximum fine of $10,000 on conviction. |
| 10 | Revocations | Revokes previous regulations. |
| Schedule 1 | Requirements for Regular Grade Petrol |
| Schedule 2 | Requirements for Premium Grade Petrol |
| Schedule 3 | Requirements for Diesel |
A property by property discussion of the requirements detailed in the Schedules is provided in Sections 7 and 8 of this document.
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