Next page . . . . Previous page . . . . Speeches . . . . Contents . . . . Debates(HTML) . . . .

Legislative Assembly for the ACT: 1999 Week 7 Hansard (2 July) . . Page.. 2250 ..

MR OSBORNE

In the late 1940s, there was an agreement made amongst oil companies that all transfers of petroleum products would be made with respect to the volume of 15 degrees.

Historically, oil companies use the converted volume for all international transfers; for all inter-company transfers; for all internal accounting; and for calculating excise payments.

The only time that temperature conversion is not used is when fuel is sold to service stations and, subsequently, to customers.

The issue of temperature conversion being used at a wholesale level was first discussed in August 1991 by the Standing Committee of Consumer Affairs Ministers who recommended that consultation occur on this topic by interested parties.

The National Standards Commission, a Federal Government Statutory Authority, investigated this matter at length and recommended that, at a national level, temperature conversion be used for the sale of petroleum products at least at a wholesale level.

It found:

"fuel sales to service stations should be temperature converted because the temperature converted measurements were readily available. At present, wholesale fuel suppliers provide temperature compensated volume measurements on a product transfer document for the purposes of paying excise which also includes the uncompensated volume measurement. It would only be a matter of transferring the compensated value to the invoice to the service station rather than the uncompensated value as at present. "

While the Commission also found that temperature conversion at a retail level was also justified, the cost of specialised equipment for each petrol pump would cost more than the benefit to the consumer.

Mr Speaker, this legislation would require all transfers of fuel over 2,000 litres in the ACT to be done on a temperature converted basis.

This will level the playing field between the oil companies and service stations in the ACT by removing the inequity where our service stations are continually paying for "phantom" litres.

The temperature conversion process comes at no cost, and will benefit the service stations and, ultimately, the Canberra consumer.

In practice, if the fuel at the time of loading is 23 degrees, for example, the volume is adjusted by the oil company to as if it were 15 degrees.