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Petroleum Products Specifications Regulations Review: Terms of Reference

[ Last Updated 20 December 2005 ]
Status:Archived

Introduction

The Ministry of Economic Development is responsible for policy relating to energy resources and energy markets. In undertaking these responsibilities, the Ministry administers the Petroleum Products Specifications Regulations 1998, established under the Ministry of Energy (Abolition) Act 1989.

Market conditions are constantly changing. Since 1988, when the petroleum market was deregulated, the market has become increasingly competitive with the entry of new players. In addition, there have been ongoing policy developments both domestically and internationally that impact on how the market operates.

Now is an appropriate time to review the specifications to ensure that consumers have access to the petroleum products they demand, and that these are affordable, of a reliable quality, and meet recognised standards.

The Review

Specifically the Ministry of Economic Development will:

  1. Undertake a review of the Petroleum Products Specifications Regulations 1998, addressing the following issues:
    1. The purpose of the current specifications and whether this purpose is still appropriate
    2. Whether the specifications are meeting present needs or need to be revised
    3. Whether the specifications are relevant for the medium and long term
    4. Whether New Zealand needs a strategy for changing the specifications over time
  2. Present the review in the form of a public consultation paper
  3. Include in the review a discussion of:
    1. Environmental, health and safety issues and the most appropriate way of addressing them;
    2. The effect of the specifications on consumer access to petroleum fuel products;
    3. Whether the specifications create barriers to the development of new products and/or the adoption of new technology;
    4. Whether the specifications reflect international trends; and
    5. Changes in the wider legislative regime.
  4. Take into account in the review:
    1. Government decisions relating to work undertaken by the Ministry of Transport and the Vehicle Fleet Emissions Control Strategy and by the Ministry for the Environment on ambient air quality; and
    2. The impact, if any, on the present of a competitive market for petroleum.

The following principles will inform the work of the review and be reflected in the Consultation Paper.

That:

  1. Standards for different components and properties of petroleum products reflect the various levels of risk posed to health, safety, the environment, and product quality (either directly or through utilisation as a vehicle fuel);
  2. Innovation and responsiveness to consumer demands is promoted;
  3. Compliance costs are minimised;
  4. Flexibility to respond to developments in the domestic and international environment is achieved;
  5. Consistency with any international obligations, for example in relation to trade and the environment, is achieved;
  6. A competitive environment is promoted and that unjustified barriers in the petroleum industry (both domestic and international) do not result; and
  7. Consistency, where appropriate, with similar international petroleum product regulations is attained.

Process for Review

The review will be led by the Ministry of Economic Development, in association with the Ministry for the Environment, the Ministry of Transport, the Ministry of Health, and the Ministry of Consumer Affairs.

  1. Information Gathering and Consultation Paper Preparation
  2. Public Consultation
  3. Receipt and Analysis of submissions from the public
  4. Presentation to the Associate Minister of Energy of Review findings and public consultation
  5. Finalisation of policy and changes to the regulations
  6. Promulgation of amendments
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