Fuel Industry Amendment Regulations 2022

2022/86

Coat of Arms of New Zealand

Fuel Industry Amendment Regulations 2022

Cindy Kiro, Governor-General

Order in Council

At Wellington this 30th day of March 2022

Present:
Her Excellency the Governor-General in Council

These regulations are made under section 27 of the Fuel Industry Act 2020—

(a)

on the advice and with the consent of the Executive Council; and

(b)

on the recommendation of the Minister of Energy and Resources made in accordance with section 27(3) of that Act.

Regulations

1 Title

These regulations are the Fuel Industry Amendment Regulations 2022.

2 Commencement

These regulations come into force on 1 April 2022.

3 Principal regulations

These regulations amend the Fuel Industry Regulations 2021.

4 Part 3A heading amended (Disclosure of information)

In the Part 3A heading, after “information”, insert “to Commission”.

5 Regulation 17A amended (Which fuels information disclosure requirements apply to)

In the heading to regulation 17A, after “requirements”, insert “in this Part”.

6 New Part 3B inserted

Immediately before Part 4, insert:

Part 3B Daily and weekly disclosure of information to chief executive

17M Which engine fuels information disclosure requirements in this Part apply to

For the purpose of section 27(2)(a) of the Act, this Part applies to the following engine fuels:

(a)

regular grade petrol:

(b)

diesel:

(c)

premium grade petrol with a research octane number of 95:

(d)

premium grade petrol with a research octane number of 98.

17N Interpretation

In this Part,—

ETS costs means New Zealand emissions trading scheme costs under the Climate Change Response Act 2002

own has the same meaning as in regulation 17B

taxes includes, where relevant,—

(a)

excise duty and excise-equivalent duty on motor spirits under the Customs and Excise Act 2018:

(b)

goods and services tax under the Goods and Services Tax Act 1985:

(c)

fuel levy under sections 213(2)(c) and (3) and 214(4) of the Accident Compensation Act 2001:

(d)

local authorities fuel tax under the Local Government Act 1974:

(e)

petroleum or engine fuel monitoring levy under the Energy (Fuels, Levies, and References) Act 1989:

(f)

regional fuel tax under the Land Transport Management Act 2003.

week means the period beginning at 12.00 am on a Monday and ending at 11.59 pm on the following Sunday.

17O Daily disclosures relating to engine fuel prices

(1)

A fuel importer must record and retain the following information in relation to each engine fuel to which this Part applies:

(a)

the total volume of engine fuel sold to resellers on each day:

(b)

the total revenue (before tax) earned from engine fuel sold to resellers on each day:

(c)

the cost to replace the engine fuel sold to resellers on each day, including international shipping and wharfage costs:

(d)

the taxes and ETS costs accrued in relation to the engine fuel sold to resellers on each day.

(2)

A fuel importer must record and retain the following information in respect of all retail fuel sites owned by the fuel importer and in relation to each engine fuel to which this Part applies:

(a)

the total volume of engine fuel sold from those retail fuel sites on each day:

(b)

the total revenue (before tax) earned from engine fuel sold on each day:

(c)

the cost to replace the engine fuel sold on each day, including international shipping and wharfage costs:

(d)

the taxes and ETS costs accrued in relation to the engine fuel sold on each day.

(3)

The fuel importer must disclose all information recorded and retained under subclause (1) or (2) to the chief executive on an indicative basis no later than 5.00 pm on the second working day after the close of the week to which the information relates.

(4)

The fuel importer must provide any corrections to the information disclosed under subclause (3) to the extent necessary to ensure that, no later than the 21st day of the calendar month after the close of the week to which disclosure relates, full and correct information has been disclosed to the chief executive in respect of all the matters referred to in subclauses (1) and (2).

(5)

The fuel importer must retain the information disclosed to the chief executive under subclauses (3) and (4) for a period of 7 years after the date of the disclosure.

17P Weekly disclosures relating to engine fuel prices

(1)

A wholesale supplier or distributor (other than a fuel importer) must record and retain the following information in relation to each engine fuel type to which this Part applies:

(a)

the total volume of engine fuel sold to resellers during each week:

(b)

the total revenue (before tax) earned from engine fuel sold to resellers during each week:

(c)

the actual price paid by the wholesale supplier or distributor for the engine fuel sold during each week:

(d)

the taxes and ETS costs accrued in relation to the engine fuel sold during each week.

(2)

A wholesale supplier or distributor (other than a fuel importer) must record and retain the following information in respect of retail fuel sites owned by the wholesale supplier or distributor and in relation to each engine fuel type to which this Part applies:

(a)

the total volume of engine fuel sold during each week:

(b)

the total revenue (before tax) earned from engine fuel sales during each week:

(c)

the actual price paid by the wholesale supplier or distributor for the engine fuel sold during each week:

(d)

the taxes and ETS costs accrued in relation to the engine fuel sold during each week.

(3)

The wholesale supplier or distributor must disclose all information recorded and retained under subclauses (1) and (2) to the chief executive on an indicative basis no later than 5.00 pm on the second working day after the close of the week to which the information relates.

(4)

The wholesale supplier or distributor must provide any corrections to the information disclosed under subclause (3) to the extent necessary to ensure that, no later than the 21st day of the calendar month after the close of the week to which disclosure relates, full and correct information has been disclosed to the chief executive in respect of all the matters referred to in subclauses (1) and (2).

(5)

The wholesale supplier or distributor must retain the information disclosed to the chief executive under subclauses (3) and (4) for a period of 7 years after the date of the disclosure.

17Q Revocation of Part

This Part is revoked on 15 July 2022.

7 Schedule 1 amended

In Schedule 1,—

(a)

insert the Part set out in the Schedule of these regulations as the last Part; and

(b)

make all necessary consequential amendments.

Schedule 1 New Part 2 inserted into Schedule 1

r 7

Part 2 Provisions relating to Fuel Industry Amendment Regulations 2022

2 Information that must be disclosed in respect of first week

For the purposes of regulation 17P, week includes the period beginning at 12.00 am on 1 April 2022 and ending at 11.59 pm on the following Sunday.

3 Information that must be disclosed in respect of transitional period

(1)

In this clause, unless the context otherwise requires,—

commencement means the commencement of the Fuel Industry Amendment Regulations 2022

transitional period means the period beginning at 12.00 am on 15 December 2021 and ending at 11.59 pm on 31 March 2022

week has the same meaning as in regulation 17N, and includes—

(a)

the period beginning at 12.00 am on 15 December 2021 and ending at 11.59 pm on 19 December 2021; and

(b)

the period beginning at 12.00 am on 28 March 2022 and ending at 11.59 pm on 31 March 2022.

(2)

A fuel importer to whom regulation 17O(1) or (2) applies as at commencement must disclose the information referred to in regulation 17O(1)(a) to (d) and (2)(a) to (d) in respect of each day during the transitional period, and each engine fuel to which Part 3B applies, on an indicative basis to the chief executive no later than 5 April 2022.

(3)

A wholesale supplier or distributor to whom regulation 17P(1) or (2) applies as at commencement must disclose the information referred to in regulation 17P(1)(a) to (d) and (2)(a) to (d) in respect of each week during the transitional period, and each engine fuel to which Part 3B applies, on an indicative basis to the chief executive no later than 5 April 2022.

(4)

The fuel importer, wholesale supplier, or distributor, as the case may be, must provide any corrections to the information disclosed under subclause (2) or (3) to the extent necessary to ensure that, no later than 21 April 2022, full and correct information has been disclosed to the chief executive in respect of all the matters referred to in regulations 17O(1)(a) to (d) and (2)(a) to (d) and 17P(1)(a) to (d) and (2)(a) to (d).

(5)

The fuel importer, wholesale supplier, or distributor, as the case may be, must retain the information disclosed to the chief executive under this clause for a period of 7 years after the date of the disclosure.

4 Ongoing obligation to retain information disclosed under regulations 17O and 17P

(1)

This clause applies on and from the revocation of Part 3B of the Fuel Industry Regulations 2021 (as inserted by the Fuel Industry Amendment Regulations 2022).

(2)

A fuel importer, wholesale supplier, or distributor must continue to retain the information disclosed to the chief executive under regulations 17O and 17P (as so inserted) for a period of 7 years after the date of the disclosure.

Michael Webster,
Clerk of the Executive Council.

Explanatory note

This note is not part of the regulations, but is intended to indicate their general effect.

These regulations, which come into force on 1 April 2022, amend the Fuel Industry Regulations 2021 (the principal regulations).

Regulations 4 and 5 make consequential amendments to Part 3A of the principal regulations.

Regulation 6 inserts new Part 3B into the principal regulations. New Part 3B—

  • requires fuel importers to provide certain information relating to wholesale and retail engine fuel sales, on a weekly basis, to the chief executive of the Ministry of Business, Innovation, and Employment (the chief executive):

  • requires wholesale suppliers and distributors who are not fuel importers to provide information relating to retail engine fuel sales, on a weekly basis, to the chief executive.

New Part 3B will be revoked a month after the temporary reduction of motor spirits duty ends (see the Excise and Excise-equivalent Duties Table (Temporary Reduction of Motor Spirits Duty) Amendment Order 2022).

Regulation 7 inserts new Part 2 into Schedule 1 of the principal regulations. New Part 2 provides for a transitional period relating to disclosure of certain information. Fuel importers, wholesale suppliers, and distributors will be required to provide that information for the period from 15 December 2021 to 31 March 2022 to the chief executive by 5 April 2022.

Section 48 of the Fuel Industry Act 2020 allows for regulations to be made that prescribe different requirements for different fuel industry participants, which has been done in these regulations.

Issued under the authority of the Legislation Act 2019.

Date of notification in Gazette: 30 March 2022.

These regulations are administered by the Ministry of Business, Innovation, and Employment.