1: Title
This Act is the COVID-19 Response (Further Management Measures) Legislation Act (No 2) 2020.
2: Commencement
This Act comes into force as follows:
a: subpart 1 Part 2 Schedule 2
b: subpart 1 Part 1 Schedule 2 subpart 2 Part 2 Schedule 2
c: subpart 2 Part 1 Schedule 2
d: the rest of the Act comes into force on the day after the date on which the Act receives the Royal assent.
3: Amendments to enactments
Amend the enactments specified in Schedules 1 to 4 2020-08-06 Income Tax Act 2007 Tax Administration Act 1994 refer to section 2(a), (b): comes into force on the day of Royal assent with effect dates. See COG 10.5 for examples. 2020-08-07 Local Government Act 2002 Tax Administration Act 1994 Accident Compensation (Experience Rating) Regulations 2019 Crown Research Institutes Act 1992 Crown Entities Act 2004 Public Finance Act 1989 State-Owned Enterprises Act 1986 refer to section 2(d): comes into force on the day after the date on which the Act receives the Royal assent. Note: some of these have with effect dates, please refer to section 2(a), (b) 2021-04-01 Income Tax Act 2007 refer to section 2(c): comes into force 1 April 2021


Fuel Industry Act 2020

1: Title
This Act is the Fuel Industry Act 2020.
2: Commencement
1: Sections 1 and 2 Part 1 Part 3 section 46
2: The rest of this Act comes into force on a date appointed by the Governor-General by Order in Council, and 1 or more orders may be made appointing different dates for different provisions and for different purposes.
3: To the extent that they are not previously brought into force under subsection (2),—
a: subparts 1 2 section 46 subpart 1 2
b: subparts 3 4
4: In this section, provision Schedule 1
5: An order under this section is secondary legislation ( see Part 3 The following table is small in size and has 3 columns that are grouped under the heading Legislation Act 2019 requirements for secondary legislation made under this section. Legislation Act 2019 requirements for secondary legislation made under this section Publication PCO must publish it on the legislation website and notify it in the Gazette LA19 s 69(1)(c) Presentation The Minister must present it to the House of Representatives LA19 s 114 cl 32(1)(a) Disallowance It may be disallowed by the House of Representatives LA19 ss 115 116 This note is not part of the Act. Section 2(5) inserted 28 October 2021 section 3 Secondary Legislation Act 2021
1: Preliminary provisions
3: Purpose
1: The purpose of Parts 1 to 3
2: The purpose of Part 4 Section 3(1) amended 1 July 2024 section 4(1) Fuel Industry (Improving Fuel Resilience) Amendment Act 2023 Section 3(2) inserted 1 July 2024 section 4(2) Fuel Industry (Improving Fuel Resilience) Amendment Act 2023
3A: Act does not apply to certain reserve fuel
This Act does not apply to—
a: fuel that is imported, for the purpose of holding reserve fuel stock, by the Crown or under an agreement with the Crown; or
b: any activities or any person in respect of that fuel. Section 3A inserted 1 July 2024 section 5 Fuel Industry (Improving Fuel Resilience) Amendment Act 2023
4: Interpretation
In this Act, unless the context otherwise requires,— bulk storage facility chief executive Commission competition dealer distributor end user engine fuel Energy (Fuels, Levies, and References) Act 1989 fixed wholesale contract
a: means a wholesale contract that governs,—
i: for a fixed period, the wholesale price and other conditions of sale and supply of engine fuel during the period; or
ii: for a fixed amount of engine fuel, the wholesale price and other conditions of sale and supply for that engine fuel; but
b: does not include a wholesale contract for the sale and supply of engine fuel under the terminal gate pricing regime in subpart 1 fuel industry participant
a: an end user; or
b: an incidental part of the hiring, leasing, or selling of motor vehicles interconnected section 2(7) Minister reseller
a: means a person that purchases, or intends to purchase, engine fuel from a wholesale supplier to sell and supply to another person; but
b: does not include a person that does so, or intends to do so, only as an incidental part of their business retail fuel site
a: means a place at which engine fuel is sold and supplied to an end user (for example, a petrol station or a truck stop); but
b: does not include a place at which the primary business is the hiring, leasing, or selling of motor vehicles; and
c: does not include a bulk storage facility retailer
a: means a person that carries on a business of selling and supplying engine fuel to end users; but
b: does not include a person who sells and supplies engine fuel only as an incidental part of their primary business of hiring, leasing, or selling motor vehicles specified engine fuel section 8(2) terminal gate price section 9 wholesale contract wholesale supplier Section 4 competition inserted 27 July 2023 section 5 Fuel Industry Amendment Act 2023
5: Transitional, savings, and related provisions
The transitional, savings, and related provisions set out in Schedule 1
6: Act binds the Crown
This Act binds the Crown.
7: Status of examples
1: An example used in this Act or in an enactment made under this Act is only illustrative of the provisions to which it relates. It does not limit those provisions.
2: If an example and a provision to which it relates are inconsistent, the provision prevails.
2: Requirements applying to fuel industry participants
1: Terminal gate pricing
8: Application and definition
1: This subpart applies to—
a: a wholesale supplier that has a right to draw specified engine fuel at a bulk storage facility as the owner or co-owner of the fuel; and
b: a reseller.
2: In this subpart, specified engine fuel
a: means regular grade petrol, premium grade petrol, or diesel (each within the meaning of regulations made under section 35
b: includes any other engine fuel that is included in this definition by any regulations made under this subpart; but
c: does not include any engine fuel referred to in paragraph (a) that is excluded from this definition by any regulations made under this subpart.
9: Obligation to post terminal gate price
1: A wholesale supplier must publicly post a price (a terminal gate price
2: The wholesale supplier must comply with any requirements of regulations made under this subpart relating to publicly posting a terminal gate price.
3: The wholesale supplier may change the terminal gate price for a specified engine fuel at any time.
4: Subsection (3) is subject to Part 2A Section 9(4) inserted 27 July 2023 section 6 Fuel Industry Amendment Act 2023
10: Right to request same-day supply
1: A reseller may, in accordance with any regulations made under this subpart, request a wholesale supplier to supply, at a bulk storage facility and on the day of the request, an amount of a specified engine fuel at its terminal gate price.
2: The reseller may withdraw the request at any time before the request is accepted by the wholesale supplier.
11: Wholesale supplier must supply at terminal gate price
1: The wholesale supplier must supply the reseller with the requested amount at its terminal gate price, unless the wholesale supplier has reasonable grounds to refuse to supply.
2: The price payable by the reseller for the specified engine fuel must not exceed the terminal gate price posted at the time the request is made.
3: The wholesale supplier must comply with any terms and conditions prescribed by regulations made under this subpart that apply to the wholesale supplier.
12: Reasonable grounds to refuse to supply
1: The wholesale supplier has reasonable grounds to refuse to supply
a: the amount of specified engine fuel requested by the reseller is less than any minimum purchase amount prescribed by regulations made under this subpart; or
b: the wholesale supplier reasonably believes that the reseller is unable or unlikely to comply with any terms and conditions prescribed by regulations made under this subpart that apply to the reseller; or
c: the wholesale supplier reasonably believes that the reseller is unable or unlikely to receive or transport the requested amount in accordance with any health and safety requirements that apply in relation to the reseller, the specified engine fuel, or the bulk storage facility concerned; or
d: the wholesale supplier reasonably believes that the reseller is unable to pay for the requested amount; or
e: the wholesale supplier requires the requested amount—
i: to meet its obligations under its contracts with end users or its fixed wholesale contracts; or
ii: to meet forecast demand, over the period prescribed by regulations made under this subpart, for specified engine fuel sold by the wholesale supplier at retail fuel sites to end users; or
f: any other grounds prescribed by regulations made under this subpart apply.
2: A wholesale supplier is not entitled to rely on subsection (1)(e) in respect of supply of specified engine fuel to an independent reseller during a prescribed time period except to the extent that supply of the specified engine fuel would require the wholesale supplier to supply more than the prescribed minimum supply amount to independent resellers during that period. Example
The prescribed time period is a month. The prescribed minimum supply amount is 30,000 litres. A wholesale supplier has, to date during the month, supplied 20,000 litres of the specified engine fuel to independent resellers. An independent reseller requests the wholesale supplier to supply 15,000 litres of the specified engine fuel to the independent reseller during the month. The wholesale supplier— is not entitled to rely on subsection (1)(e) in respect of 10,000 litres (when it will have supplied the prescribed minimum supply amount of 30,000 litres to independent resellers in the month): is entitled to rely on subsection (1)(e) in respect of 5,000 litres (being the amount exceeding the prescribed minimum supply amount).
3: A wholesale supplier to which subsection (1)(e)(i) and (ii) applies (that is, the wholesale supplier requires the specified engine fuel that it has available to supply to meet obligations under its contracts with end users or its fixed wholesale contracts or to meet forecast demand) must provide or publish a notice in accordance with any regulations made under this subpart.
4: A wholesale supplier that has supplied the prescribed minimum supply amount to an independent reseller (or to independent resellers) during a prescribed time period must provide or publish a notice in accordance with any regulations made under this subpart.
5: For the purposes of this section, independent reseller
a: an interconnected body corporate of the wholesale supplier; or
b: a party to a fixed wholesale contract with the wholesale supplier or with an interconnected body corporate of the wholesale supplier.
13: Regulations under this subpart
1: The Governor-General may, by Order in Council made on the recommendation of the Minister, make regulations—
a: prescribing any engine fuels that are included in, or excluded from, the definition of specified engine fuel for the purpose of section 8(2)
b: prescribing requirements relating to posting terminal gate prices for the purpose of section 9(2)
i: how terminal gate prices must be expressed (for example, as cents per litre and whether they are inclusive or exclusive of tax); or
ii: how any additional charges must be itemised (for example, that additional charges, fees, duties, or taxes must be identified separately); or
iii: where terminal gate prices must be posted (for example, on a wholesale supplier’s Internet site); or
c: prescribing requirements relating to requests by resellers under section 10
d: prescribing the following terms and conditions for the purposes of sections 11(3) 12(1)(b)
i: the documentation that must be provided by wholesale suppliers to resellers for each sale at the terminal gate price:
ii: providing for pre-certification to allow wholesale suppliers to determine before supply if the reseller is likely to pay or to meet health and safety requirements; or
e: prescribing the minimum purchase amount for the purpose of section 12(1)(a)
f: prescribing the period over which demand may be forecast for the purpose of section 12(1)(e)(ii)
g: prescribing any other grounds to refuse to supply for the purpose of section 12(1)(f)
h: prescribing the time period for the purpose of section 12(2)
i: prescribing the minimum supply amount for the purpose of section 12(2)
j: prescribing requirements relating to notices under section 12(3) and (4)
2: The Minister may make a recommendation only if—
a: the Minister has consulted any fuel industry participants that the Minister considers are likely to be significantly affected by the regulations:
b: in the case of regulations specifying engine fuels that are included in, or excluded from, the definition of specified engine fuel,—
i: the Minister has had regard to the impact of the regulations on incentives to innovate and to invest in markets for specified engine fuels; and
ii: the Minister is satisfied that a significant proportion of the relevant engine fuel is used by motor vehicles (as defined in section 2(1)
iii: the Minister is satisfied that the regulations are necessary or desirable after having regard to the purpose of Parts 1 to 3
3: Regulations under this section are secondary legislation ( see Part 3 The following table is small in size and has 3 columns that are grouped under the heading Legislation Act 2019 requirements for secondary legislation made under this section. Legislation Act 2019 requirements for secondary legislation made under this section Publication PCO must publish it on the legislation website and notify it in the Gazette LA19 s 69(1)(c) Presentation The Minister must present it to the House of Representatives LA19 s 114 cl 32(1)(a) Disallowance It may be disallowed by the House of Representatives LA19 ss 115 116 This note is not part of the Act. Section 13(2)(b)(iii) amended 1 July 2024 section 6 Fuel Industry (Improving Fuel Resilience) Amendment Act 2023 Section 13(3) inserted 28 October 2021 section 3 Secondary Legislation Act 2021
2: Fixed wholesale contractual terms
14: Application of this subpart
This subpart applies to fixed wholesale contracts for any engine fuel.
15: Transparency obligation
A wholesale supplier must ensure that the terms of its fixed wholesale contracts are expressed clearly, concisely, and in plain language.
16: Transparent pricing under fixed wholesale contracts
1: A wholesale supplier must ensure that—
a: its fixed wholesale contracts specify, in accordance with any regulations made under this subpart, the method ( pricing method
b: the price of any engine fuel supplied under its fixed wholesale contracts is calculated using that pricing method.
2: A wholesale supplier must not vary the pricing method specified in a fixed wholesale contract, except in accordance with any regulations made under this subpart.
17: Right to terminate certain fixed wholesale contracts
1: A distributor may terminate a fixed wholesale contract with a wholesale supplier at any time after it has been in force for longer than the maximum duration prescribed by any regulations made under this subpart.
2: Subsection (1) does not apply if—
a: it is reasonably necessary for the contract to be in force for longer than the prescribed maximum duration to enable, or to enable the recovery of, specific investment by the wholesale supplier for the benefit of the distributor; or
b: the contract does not require the distributor to purchase a minimum amount of engine fuel from the wholesale supplier.
3: A distributor may terminate a fixed wholesale contract under subsection (1) by giving reasonable notice in writing to the wholesale supplier.
18: Maximum percentage of annual requirement of engine fuel that may be subject to exclusivity
1: A provision in a fixed wholesale contract is of no effect to the extent that it requires the distributor to purchase from the wholesale supplier more than the maximum percentage (as prescribed by any regulations made under this subpart) of the distributor’s annual requirement for engine fuel.
2: A wholesale supplier must not enter into a fixed wholesale contract that contains a provision of the kind described in subsection (1).
3: Subsections (1) and (2) do not apply if a provision of the kind referred to in subsection (1) is reasonably necessary to enable, or to enable the recovery of, specific investment by the wholesale supplier for the benefit of the distributor.
4: A wholesale supplier may, in any fixed wholesale contract with a distributor, require the distributor,—
a: for the purpose of ensuring that the wholesale supplier can comply with subsections (1) and (2), to provide to the wholesale supplier the distributor’s forecast of its annual requirement for supply of engine fuel under the contract; and
b: to give reasonable notice to the wholesale supplier of the distributor’s intention to take supply from another supplier.
19: Wholesale contractual terms that limit ability of reseller to compete
1: A wholesale supplier must not enter into a fixed wholesale contract that contains a provision that—
a: is likely to limit the ability of the reseller who is a party to that contract to compete with the wholesale supplier or any other person; and
b: is not reasonably necessary in order to protect the reasonable commercial interests of the supplier.
2: A provision that is prohibited under subsection (1) is of no effect.
3: In determining whether a provision of a wholesale contract is prohibited under subsection (1), a court must take into account—
a: the fixed wholesale contract as a whole; and
b: any other matters that the court thinks are relevant.
4: Without limiting subsection (1)(a), the following are examples of provisions that may be likely to limit the ability of the reseller to compete with the wholesale supplier or any other person:
a: provisions that limit the ability of the reseller to obtain supply of fuel from another wholesale supplier following the end of the term of the fixed wholesale contract (for example, a provision that gives the wholesale supplier a right to renewal of the fixed wholesale contract):
b: provisions that prevent the reseller from competing in any retail market that the wholesale supplier is active in, for example,—
i: a provision preventing the reseller from competing in a certain geographic area; or
ii: a provision that prioritises the allocation of engine fuel to the wholesale supplier’s retail fuel sites over allocation to the reseller, in the event of a supply constraint:
c: provisions that restrict the ability of the reseller to make independent decisions about the conduct of their business (for example, a provision that gives the wholesale supplier a first right of refusal for the transfer of ownership of the reseller’s business).
20: Regulations under this subpart
1: The Governor-General may, by Order in Council made on the recommendation of the Minister, make regulations—
a: relating to the specification of a pricing method in a fixed wholesale contract for the purpose of section 16(1)(a)
b: prescribing the circumstances in which a pricing method may be varied for the purpose of section 16(2)
c: prescribing the maximum duration for the purpose of section 17
d: prescribing the maximum percentage for the purpose of section 18
2: The Minister may make a recommendation under subsection (1) only if—
a: the Minister has consulted any fuel industry participants that the Minister considers are likely to be significantly affected by the regulations; and
b: the Minister is satisfied that the regulations are necessary or desirable after having regard to the purpose of Parts 1 to 3
3: Regulations under this section are secondary legislation ( see Part 3 The following table is small in size and has 3 columns that are grouped under the heading Legislation Act 2019 requirements for secondary legislation made under this section. Legislation Act 2019 requirements for secondary legislation made under this section Publication PCO must publish it on the legislation website and notify it in the Gazette LA19 s 69(1)(c) Presentation The Minister must present it to the House of Representatives LA19 s 114 cl 32(1)(a) Disallowance It may be disallowed by the House of Representatives LA19 ss 115 116 This note is not part of the Act. Section 20(2)(b) amended 1 July 2024 section 7 Fuel Industry (Improving Fuel Resilience) Amendment Act 2023 Section 20(3) inserted 28 October 2021 section 3 Secondary Legislation Act 2021
3: Consumer information requirements
21: Purpose of this subpart
The purpose of this subpart is to provide transparency in retail fuel prices so that end users are able to make informed purchasing decisions.
22: Obligation to comply with consumer information requirements
A retailer, or the person responsible for displaying information at a retail fuel site, must comply with any requirements prescribed by regulations made under this subpart.
23: Notice to take corrective action
1: If satisfied that a retailer, or a person responsible for displaying information at a retail fuel site, has failed to comply with any requirements prescribed by regulations under this subpart, the Commission may, by written notice given to the retailer or person, require the retailer or person to take any steps specified in the notice to—
a: remedy the non-compliance; or
b: ensure that the non-compliance is not continued or repeated.
2: A notice given under this section must specify a reasonable period (a specified period
3: A retailer, or person responsible for displaying information at a retail fuel site, given a notice under this section must comply with the notice within the specified period.
24: Consumer information requirements may be prescribed
1: The Governor-General may, by Order in Council made on the recommendation of the Minister, make regulations prescribing requirements relating to the display of information at retail fuel sites about the price of engine fuels.
2: In particular, the regulations may prescribe—
a: the engine fuels and kinds of retail fuel sites the regulations apply to; or
b: the information in relation to the price of those engine fuels that must be displayed; or
c: the circumstances in which the information must be displayed; or
d: the form and manner in which the information must be displayed; or
e: any information that must not be displayed (for example, discounts on the price of engine fuels).
3: The Minister may make a recommendation under subsection (1) only if—
a: the Minister has consulted any fuel industry participants that the Minister considers are likely to be significantly affected by the regulations; and
b: the Minister is satisfied that the regulations are necessary or desirable after having regard to the purposes of Parts 1 to 3
4: Regulations under this section are secondary legislation ( see Part 3 The following table is small in size and has 3 columns that are grouped under the heading Legislation Act 2019 requirements for secondary legislation made under this section. Legislation Act 2019 requirements for secondary legislation made under this section Publication PCO must publish it on the legislation website and notify it in the Gazette LA19 s 69(1)(c) Presentation The Minister must present it to the House of Representatives LA19 s 114 cl 32(1)(a) Disallowance It may be disallowed by the House of Representatives LA19 ss 115 116 This note is not part of the Act. Section 24(3)(b) amended 1 July 2024 section 8 Fuel Industry (Improving Fuel Resilience) Amendment Act 2023 Section 24(4) inserted 28 October 2021 section 3 Secondary Legislation Act 2021
4: Disclosure of information
25: Purposes of this subpart
The purposes of this subpart are—
a: to enable the chief executive and the Commission to monitor the performance of engine fuel markets; and
b: to ensure that sufficient information is readily available to the chief executive and the Commission to assess whether the purpose of Parts 1 to 3 Section 25(b) amended 1 July 2024 section 9 Fuel Industry (Improving Fuel Resilience) Amendment Act 2023
26: Obligation to comply with information disclosure requirements
1: Every fuel industry participant to which requirements prescribed by the regulations made under this subpart apply must comply with those requirements.
2: Without limiting subsection (1), a fuel industry participant must disclose information to the chief executive or the Commission in any circumstances prescribed by the regulations.
3: The fuel industry participant must disclose the information in any form and manner specified by the chief executive or the Commission (as the case may be).
27: Information disclosure requirements may be prescribed
1: The Governor-General may, by Order in Council made on the recommendation of the Minister, make regulations prescribing requirements relating to record keeping, and the retention and disclosure of information, about engine fuel markets.
2: In particular, the regulations may prescribe—
a: the kinds of fuel industry participants, the engine fuels, and other matters that the regulations apply to; or
b: the information that must be recorded and retained; or
c: the methodologies that must be applied in recording the information, including—
i: how common costs are to be allocated; and
ii: how assets are to be valued; or
d: the circumstances in which information must be disclosed to the chief executive, the Commission, or both (for example, when requested by the chief executive or the Commission, at a specified time, or on the occurrence of a specified event); or
e: requirements relating to the publication of information that is required to be disclosed to the chief executive or the Commission.
3: The Minister may make a recommendation under subsection (1) only if—
a: the Minister has consulted any fuel industry participants that the Minister considers are likely to be significantly affected by the regulations; and
b: the Minister is satisfied that the regulations are necessary or desirable after having regard to the purpose of Parts 1 to 3
4: Regulations under this section are secondary legislation ( see Part 3 The following table is small in size and has 3 columns that are grouped under the heading Legislation Act 2019 requirements for secondary legislation made under this section. Legislation Act 2019 requirements for secondary legislation made under this section Publication PCO must publish it on the legislation website and notify it in the Gazette LA19 s 69(1)(c) Presentation The Minister must present it to the House of Representatives LA19 s 114 cl 32(1)(a) Disallowance It may be disallowed by the House of Representatives LA19 ss 115 116 This note is not part of the Act. Section 27(3)(b) amended 1 July 2024 section 10 Fuel Industry (Improving Fuel Resilience) Amendment Act 2023 Section 27(4) inserted 28 October 2021 section 3 Secondary Legislation Act 2021
28: Publication of analysis or summary
The chief executive or the Commission may,—
a: for the purposes of this subpart, analyse and summarise any information disclosed to them under this subpart; and
b: publish any resulting analysis or summary.
29: Information sharing between Commission and chief executive
Section 29 repealed 1 July 2024 section 11 Fuel Industry (Improving Fuel Resilience) Amendment Act 2023
2A: Price regulation of terminal gate prices
Part 2A inserted 27 July 2023 section 4 Fuel Industry Amendment Act 2023
1: Preliminary provisions
Subpart 1 inserted 27 July 2023 section 4 Fuel Industry Amendment Act 2023
29A: Interpretation and overview
1: In this Part, unless the context otherwise requires,— price regulation regulation regulated terminal gate price section 29J
2: The process for imposing price regulation on particular terminal gate prices involves the following steps:
a: the Commission holds an inquiry into whether to regulate the terminal gate prices, and then makes a recommendation to the Minister under section 29G
b: the Minister considers the Commission’s recommendation and decides whether to recommend to the Governor-General that price regulation be imposed:
c: if the Minister decides to recommend price regulation, an Order in Council may be made under section 29J
d: for each regulated terminal gate price (or group of regulated terminal gate prices), the Commission makes a determination under section 29L
3: This section is intended only as a guide to the general scheme and effect of this Part. 1986 No 5 s 52E Section 29A inserted 27 July 2023 section 4 Fuel Industry Amendment Act 2023
29B: Effect of terminal gate prices being subject to price regulation
1: If terminal gate prices are subject to price regulation, every wholesale supplier must comply with every determination made under section 29L
2: Sections 30 to 38 section 29L
3: The Commission is entitled to exercise any of its powers under this Act and under the Commerce Act 1986 1986 No 5 s 52F Section 29B inserted 27 July 2023 section 4 Fuel Industry Amendment Act 2023
29C: When terminal gate prices may be regulated
The Commission may make a recommendation that price regulation should be imposed on terminal gate prices only if it is satisfied that the relevant wholesale supplier has posted terminal gate prices, for the relevant specified engine fuel and bulk storage facility, that were above what would be expected in a competitive market. Example
The Commission holds an inquiry into all terminal gate prices in New Zealand for diesel (in respect of all wholesale suppliers and all bulk storage facilities). However, if only 1 supplier at 1 bulk storage facility has posted terminal gate prices for diesel that were above what would be expected in a competitive market, the Commission may recommend regulation only in respect of the diesel terminal gate prices of that supplier at that facility (and not other prices). 1986 No 5 s 52G Section 29C inserted 27 July 2023 section 4 Fuel Industry Amendment Act 2023
2: How price regulation may be imposed
Subpart 2 inserted 27 July 2023 section 4 Fuel Industry Amendment Act 2023 Commission inquiry Heading inserted 27 July 2023 section 4 Fuel Industry Amendment Act 2023
29D: How inquiry triggered
1: The Commission—
a: must hold an inquiry if required to do so by the Minister in writing; and
b: may hold an inquiry on its own initiative.
2: In both cases, the Minister must specify a time frame within which the Commission must make a recommendation under section 29G 1986 No 5 s 52H Section 29D inserted 27 July 2023 section 4 Fuel Industry Amendment Act 2023
29E: Commission inquiry into particular terminal gate prices
1: In conducting an inquiry into particular terminal gate prices, the Commission must consider—
a: whether the test in section 29C
b: if so, whether price regulation should be imposed on the terminal gate prices and for how long; and
c: if so, how the terminal gate prices should be defined (that is, by reference to all or any of specified engine fuel, wholesale supplier, or bulk storage facility).
2: During an inquiry, the Commission may have regard to any other matters it considers necessary or desirable for the purpose of the inquiry. 1986 No 5 s 52I Section 29E inserted 27 July 2023 section 4 Fuel Industry Amendment Act 2023
29F: Process of inquiry
1: At the start of an inquiry, the Commission must publish in the Gazette
a: in the case of an inquiry required by the Minister, the Minister’s requirements; and
b: in the case of an inquiry on the initiative of the Commission, the terms of reference for the inquiry.
2: The notice must set out indicative time frames and key steps.
3: Before making a recommendation under section 29G 1986 No 5 s 52J 2022 No 21 s 13 Section 29F inserted 27 July 2023 section 4 Fuel Industry Amendment Act 2023
29G: Commission's recommendation following inquiry
1: At the end of an inquiry, having considered the matters in section 29E
2: If the Commission recommends that price regulation should be imposed on particular terminal gate prices, the recommendation must state—
a: which terminal gate prices should be regulated, by reference to all or any of the following:
i: the specified engine fuel or fuels:
ii: the wholesale supplier or suppliers:
iii: the bulk storage facility or facilities; and
b: how long the regulation should be in place.
3: The Commission must make the recommendation publicly available as soon as practicable after making it, including a statement of its reasons for making the recommendation.
4: To avoid doubt, a recommendation by the Commission is not a determination of the Commission. 1986 No 5 s 52K Section 29G inserted 27 July 2023 section 4 Fuel Industry Amendment Act 2023 Order in Council imposing regulation Heading inserted 27 July 2023 section 4 Fuel Industry Amendment Act 2023
29H: Minister's consideration
1: The Minister must consider any recommendation of the Commission made under section 29G
2: As part of that consideration, the Minister—
a: must consult the Minister of Commerce and Consumer Affairs and the Minister of Transport; and
b: may request further information or advice from the Commission; and
c: may request that the Commission reconsider any matter (for example, an error, an oversight, or a competing policy interest).
3: The Minister must make publicly available any request made under subsection (2)(c), and the Commission must make publicly available its advice given following that request.
4: If the Commission receives a request under subsection (2)(c), it may, at its discretion,—
a: consult interested parties; or
b: reopen its inquiry, in which case section 29F 1986 No 5 s 52L Section 29H inserted 27 July 2023 section 4 Fuel Industry Amendment Act 2023
29I: Minister's decision and recommendation
1: Having considered the Commission’s recommendation in accordance with section 29H
a: decide whether, in the opinion of the Minister, price regulation should be imposed on all or any of the terminal gate prices recommended by the Commission; and
b: make a recommendation to that effect, if so.
2: The Minister's decision may be—
a: the same as the Commission’s recommendation under section 29G
b: different from the Commission’s recommendation under section 29G Example
After an inquiry, the Commission recommends that all diesel terminal gate prices that are posted by suppliers A and B should be regulated. The Minister may recommend the same or the Minister may recommend that regulation should apply only to all or some of supplier A’s diesel terminal gate prices and not supplier B’s (or vice versa). The Minister cannot recommend that regulation should apply to supplier C unless the Commission makes a separate recommendation to that effect.
3: If the Minister's decision is different from the Commission's recommendation, the Minister must set out the reasons for the decision and make the decision, with the reasons, publicly available. 1986 No 5 s 52M Section 29I inserted 27 July 2023 section 4 Fuel Industry Amendment Act 2023
29J: Order in Council imposing regulation
1: The Governor-General may, on the recommendation of the Minister made under section 29I
2: The order must declare that the terminal gate prices are regulated under this Part.
3: The order may identify the terminal gate prices it relates to by reference to all or any of—
a: the specified engine fuel or fuels:
b: the wholesale supplier or suppliers:
c: the bulk storage facility or facilities.
4: The order must include an expiry date (which must be a date not later than 5 years after its commencement date) at the close of which the order is revoked.
5: Despite subsection (4), the order may be earlier revoked in the manner in which it was made.
6: An order under this section is secondary legislation ( see Part 3 1986 No 5 s 52N The following table is small in size and has 3 columns that are grouped under the heading Legislation Act 2019 requirements for secondary legislation made under this section. Legislation Act 2019 requirements for secondary legislation made under this section Publication PCO must publish it on the legislation website and notify it in the Gazette LA19 s 69(1)(c) Presentation The Minister must present it to the House of Representatives LA19 s 114 cl 32(1)(a) Disallowance It may be disallowed by the House of Representatives LA19 ss 115 116 This note is not part of the Act. Section 29J inserted 27 July 2023 section 4 Fuel Industry Amendment Act 2023
29K: Revocation or amendment of Order in Council
1: An Order in Council made under section 29J
2: In subsection (1), significantly amended
a: the terminal gate prices, or any of them, are no longer regulated; or
b: terminal gate prices that were not identified in the original order are now subject to regulation.
3: An Order in Council made under section 29J 1986 No 5 s 52O Section 29K inserted 27 July 2023 section 4 Fuel Industry Amendment Act 2023 Commission determination about how regulation applies Heading inserted 27 July 2023 section 4 Fuel Industry Amendment Act 2023
29L: Commission determination about how regulation applies
1: The Commission must make determinations under this section specifying how price regulation applies to wholesale suppliers and regulated terminal gate prices.
2: In considering whether the Act’s purpose is promoted in making a determination, the Commission must take into account the outcomes that would be expected in a competitive market, including wholesale suppliers’ incentives to invest to meet the demand of end users of engine fuel products.
3: Determinations must be made—
a: only after consultation with interested parties on the draft pricing principle or pricing methodology that the Commission proposes to apply; and
b: as soon as practicable after the Order in Council under section 29J
4: Determinations must—
a: set out, for each regulated terminal gate price, the pricing principles or pricing methodologies that apply and the requirements that apply to each wholesale supplier; and
b: set out any time frames that must be met or that apply.
5: It is not necessary for a single determination to address all matters relating to particular regulated terminal gate prices, or to a wholesale supplier of regulated terminal gate prices, and different parts of any determination may come into effect at different times.
6: A determination under this section may require a wholesale supplier to comply with the requirements set out in any other determination that has been made under this section in respect of regulated terminal gate prices of the same type.
7: The Commission must, as soon as practicable after making a determination under this section, give to each wholesale supplier to which the determination relates notice of the determination and where it is available.
8: Each wholesale supplier to which the determination relates must comply with the requirements imposed by the determination.
9: A determination under this section and an amendment to a determination are secondary legislation ( see Part 3 1986 No 5 s 52P The following table is small in size and has 3 columns that are grouped under the heading Legislation Act 2019 requirements for secondary legislation made under this section. Legislation Act 2019 requirements for secondary legislation made under this section Publication The maker must publish it in accordance with the Legislation (Publication) Regulations 2021 LA19 s 74(1)(aa) Subsection (7) must also be complied with Presentation The Minister must present it to the House of Representatives LA19 s 114 Disallowance It may be disallowed by the House of Representatives LA19 ss 115 116 This note is not part of the Act. Section 29L inserted 27 July 2023 section 4 Fuel Industry Amendment Act 2023
29M: Amendment of determination made under section 29L
1: A determination made under section 29L
2: However, the Commission is not required to conduct an inquiry before amending a determination.
3: As soon as practicable after making an amendment, the Commission must give to each wholesale supplier to which the determination relates notice of the amendment and where it is available. 1986 No 5 s 52Q Section 29M inserted 27 July 2023 section 4 Fuel Industry Amendment Act 2023
3: Miscellaneous provisions
Subpart 3 inserted 27 July 2023 section 4 Fuel Industry Amendment Act 2023
29N: Commerce Act 1986 not limited
This Part does not limit subpart 2 1986 No 5 s 56N Section 29N inserted 27 July 2023 section 4 Fuel Industry Amendment Act 2023
29O: Application of Commerce Act 1986 to this Part
1: The following provisions of the Commerce Act 1986
a: section 26
b: section 53N
c: section 53ZD
d: section 98
2: This section does not limit the application of other provisions of the Commerce Act 1986 Section 29O inserted 27 July 2023 section 4 Fuel Industry Amendment Act 2023
3: Proceedings and miscellaneous provisions
for purpose of Parts 1 to 3 Part 3 heading amended 1 July 2024 section 12 Fuel Industry (Improving Fuel Resilience) Amendment Act 2023
1: Proceedings
30: Pecuniary penalties
1: The High Court may, on the application of the Commission, order a person to pay to the Crown a pecuniary penalty if satisfied that the person—
a: has contravened any of the following provisions:
i: section 9 11
ii: section 15 16 18(2) 19(1)
iii: section 22
iv: requirements imposed by a determination made under section 29L Part 2A
b: has attempted to contravene any of those provisions; or
c: has aided, abetted, counselled, or procured any other person to contravene any of those provisions; or
d: has induced, or attempted to induce, any other person, whether by threats or promises or otherwise, to contravene any of those provisions; or
e: has been in any way, directly or indirectly, knowingly concerned in, or party to, the contravention by any other person of any of those provisions; or
f: has conspired with any other person to contravene any of those provisions.
2: The High Court may, on the application of the Commission or the chief executive, order a person to pay to the Crown a pecuniary penalty if satisfied that the person—
a: has contravened section 26
b: has attempted to contravene that provision; or
c: has aided, abetted, counselled, or procured any other person to contravene that provision; or
d: has induced, or attempted to induce, any other person, whether by threats or promises or otherwise, to contravene that provision; or
e: has been in any way, directly or indirectly, knowingly concerned in, or party to, the contravention by any other person of that provision; or
f: has conspired with any other person to contravene that provision.
3: The amount of any pecuniary penalty under subsection (1) or (2) must not exceed,—
a: in the case of an individual, $500,000 for each act or omission; or
b: in any other case, $5,000,000 for each act or omission.
4: The District Court may, on the application of the Commission, order a person to pay to the Crown a pecuniary penalty if satisfied that the person—
a: has failed to provide or publish a notice as required by section 12(3) or (4)
b: has failed to comply with a notice given by the Commission under section 23(1)
5: The amount of any pecuniary penalty under subsection (4) must not exceed,—
a: in the case of an individual, $10,000 for each act or omission; or
b: in any other case, $30,000 for each act or omission.
6: In determining an appropriate penalty under this section, the court must have regard to,—
a: in the case of a contravention referred to in subsection (1)(a) or (4)(b),—
i: the nature and extent of the contravention; and
ii: the nature and extent of any loss or damage suffered by any person because of the contravention; and
iii: any gains made or losses avoided by the person in contravention; and
iv: whether or not the person in contravention has paid an amount in compensation or taken other steps for reparation or restitution; and
b: the circumstances in which the contravention or other act or omission took place (including whether it was intentional, inadvertent, or caused by negligence); and
c: any previous contraventions of a similar nature; and
d: any other relevant matter.
7: Where conduct by any person constitutes a contravention of 2 or more provisions referred to in subsection (1)(a), proceedings may be instituted under this Act against that person in relation to the contravention of any 1 or more of the provisions.
8: However, no person is liable to more than 1 pecuniary penalty under this section in respect of the same conduct. 1986 No 5 s 80 Section 30(1)(a)(iv) inserted 27 July 2023 section 7 Fuel Industry Amendment Act 2023
31: Proceedings for pecuniary penalties
In any proceedings under this subpart for a pecuniary penalty,—
a: the standard of proof is the standard of proof that applies in civil proceedings; and
b: the Commission may, by order of the court, obtain discovery and administer interrogatories. 1986 No 5 s 79A
32: Court may order compensation
1: If a court orders a person to pay a pecuniary penalty under section 30
2: An application for orders under this section may be made by the Commission.
3: The application must be made as part of proceedings under section 30
4: In proceedings under this section, the court may make any orders as to costs that it thinks fit. 1986 No 5 s 87A Application of Commerce Act 1986
33: Application of Commerce Act 1986
The following provisions of the Commerce Act 1986
a: section 74A
b: section 74B
c: section 74C
d: section 79
e: section 90
f: section 98
g: sections 98A 98G
h: section 99
ha: sections 99B to 99P
i: references to an overseas regulator were references to an overseas body that has functions relating to the regulation of the fuel industry:
ii: references in those sections to the Minister were references to the Minister responsible for the administration of this Act:
i: section 100
j: section 100A Section 33(ha) inserted 27 July 2023 section 8 Fuel Industry Amendment Act 2023
34: Additional proceedings
Proceedings brought under this Act are in addition to any proceedings brought under any other Act. 2003 No 52 s 114 Injunctions
35: Court may grant injunction
1: The court may, on the application of the Commission or any other person, grant an injunction—
a: restraining a person from engaging in conduct that constitutes or would constitute a contravention of this Act (including any matter referred to in section 30(1) or (4)(b)
b: requiring a person to do an act or a thing if—
i: that person has refused or failed, or is refusing or failing, or is proposing to refuse or fail, to do that act or thing; and
ii: the refusal or failure was, is, or would be a contravention of this Act.
2: The court may at any time rescind or vary an injunction granted under this subpart. 2013 No 69 s 480
36: When court may grant restraining injunctions
1: The court may grant an injunction restraining a person from engaging in conduct of a particular kind if—
a: it is satisfied that the person has engaged in conduct of that kind; or
b: it appears to the court that, if an injunction is not granted, it is likely that the person will engage in conduct of that kind.
2: The court may grant an interim injunction restraining a person from engaging in conduct of a particular kind if in its opinion it is desirable to do so.
3: Subsections (1)(a) and (2) apply whether or not it appears to the court that the person intends to engage again, or to continue to engage, in conduct of that kind.
4: Subsections (1)(b) and (2) apply whether or not—
a: the person has previously engaged in conduct of that kind; or
b: there is an imminent danger of substantial damage to any other person if the person engages in conduct of that kind. 2013 No 69 s 481
37: When court may grant performance injunctions
1: A court may grant an injunction requiring a person to do an act or a thing if—
a: it is satisfied that the person has refused or failed to do that act or thing; or
b: it appears to the court that, if an injunction is not granted, it is likely that the person will refuse or fail to do that act or thing.
2: The court may grant an interim injunction requiring a person to do an act or a thing if in its opinion it is desirable to do so.
3: Subsections (1)(a) and (2) apply whether or not it appears to the court that the person intends to refuse or fail again, or to continue to refuse or fail, to do that act or thing.
4: Subsections (1)(b) and (2) apply whether or not—
a: the person has previously refused or failed to do that act or thing; or
b: there is an imminent danger of substantial damage to any other person if the person refuses or fails to do that act or thing.
38: Commission’s undertaking as to damages not required
1: If the Commission applies to the court for the grant of an interim injunction under this subpart, the court must not, as a condition of granting an interim injunction, require the Commission to give an undertaking as to damages.
2: In determining the Commission’s application for the grant of an interim injunction, the court must not take into account that the Commission is not required to give an undertaking as to damages. 2013 No 69 s 482 Other orders
39: Other orders
1: Where, in any proceedings under this subpart, the court finds that a party to the proceedings has suffered, or is likely to suffer, loss or damage because of another person’s contravention of any of the provisions of this Act, the court may (whether or not it grants an injunction or makes any other order under this subpart) make any order that it thinks appropriate against another party—
a: who is the person in contravention; or
b: who did any act referred to in section 30(1)(b) to (f) or (2)(b) to (f)
2: Where a contract is entered into in contravention of this Act, or contains a provision that (under this Act) is of no effect, the court may, in any proceedings under this subpart, make an order—
a: varying the contract as it thinks fit, but not so that it is inconsistent with the provisions of this Act; or
b: cancelling the contract; or
c: requiring any party to the contract to make restitution or pay compensation to any other party to the contract.
3: Nothing in subpart 5
4: Despite any enactment or rule of law, if a contract is entered into in contravention of this Act because the contract contains a particular provision, or the contract contains a provision that (under this Act) is of no effect, the enforceability of any other provision of the contract is not affected.
5: A person who has suffered, or is likely to suffer, loss or damage because of another person’s contravention of any of the provisions of subpart 2 subpart 2 of Part 2 1986 No 5 s 89 Jurisdiction
40: Jurisdiction of High Court
In accordance with this subpart, the High Court must hear and determine the following matters:
a: applications for orders under section 74C
b: proceedings to determine whether a provision of a wholesale contract is prohibited under section 19
c: proceedings for the recovery of pecuniary penalties under section 30(1) or (2)
d: applications for orders for compensation under section 32
e: applications for injunctions under section 35
f: applications for orders under section 39 1986 No 5 s 75
41: Jurisdiction of District Court
In accordance with this subpart, the District Court must hear and determine the following matters:
a: proceedings for the recovery of pecuniary penalties under section 30(4)
b: proceedings for offences against section 42
c: proceedings for offences against section 100 1986 No 5 s 76 Offences
42: Offences in respect of provisions of Commerce Act 1986
1: A person must not,—
a: without reasonable excuse, refuse or fail to comply with a notice under sections 53N 53ZD 98
b: in purported compliance with such a notice, provide information, or produce a document, or give evidence, or authorise the making of a statement in a document, knowing it to be false or misleading; or
c: resist, obstruct, or delay an employee of the Commission acting under a warrant issued under section 98A
2: A person must not attempt to deceive or knowingly mislead the Commission in relation to any matter before it.
3: A person must not, having been required to appear before the Commission in accordance with section 98(1)(c)
a: without reasonable excuse, refuse or fail to appear before the Commission to give evidence; or
b: refuse to take an oath or make an affirmation as a witness; or
c: refuse to answer any question; or
d: refuse to produce to the Commission any book or document that that person is required to produce.
4: A person who contravenes subsection (1), (2), or (3) commits an offence and is liable on conviction to,—
a: in the case of an individual, a fine not exceeding $100,000:
b: in any other case, a fine not exceeding $300,000. 1986 No 5 s 103 Section 42 heading replaced 27 July 2023 section 9(1) Fuel Industry Amendment Act 2023 Section 42(1)(a) amended 27 July 2023 section 9(2) Fuel Industry Amendment Act 2023 Other matters
43: Onus of proving certain provisions are reasonably necessary
In any proceedings relating to section 17 18 19 section 17(2)(a), 18(3), or 19(1)(b)
44: Limitation period for proceedings
1: Proceedings for offences against section 42 section 100
2: Any civil proceedings relating to a contravention of any of the provisions of this Act may be commenced—
a: no later than 3 years after the matter giving rise to the contravention was discovered or ought reasonably to have been discovered; and
b: no later than 10 years after the matter giving rise to the contravention.
2: Miscellaneous provisions
45: Application of Commerce Act 1986
The following provisions of the Commerce Act 1986
a: section 13
b: section 15
c: section 16
ca: section 17
d: section 25
e: sections 101 102
f: section 106
g: section 106A
h: section 109 Section 45(ca) inserted 27 July 2023 section 10 Fuel Industry Amendment Act 2023
46: Dispute arising from subpart 1 or 2 of Part 2 must be referred to mediation
1: This section applies to any dispute between a wholesale supplier and a reseller that arises from the performance or non-performance of a duty or the exercise of a right under subpart 1 2
2: If a dispute to which this section applies is unable to be resolved by agreement between the parties, the dispute must be referred to mediation.
3: Mediation under subsection (2) must be carried out in accordance with the procedure prescribed in any regulations made under this subpart.
4: If the parties are unable to resolve the dispute at mediation within any time frame prescribed by regulations made under this subpart, either party may refer the dispute to arbitration.
5: If a dispute is referred to arbitration under subsection (2), the provisions of the Arbitration Act 1996
6: Nothing in this section and no action taken under this section prevents proceedings from being brought by the Commission against a person for a failure to comply with any of that person’s obligations under this Act. 2013 No 91 s 117
47: Other regulations
1: The Governor-General may, by Order in Council made on the recommendation of the Minister, make regulations—
a: prescribing procedures for the purpose of section 46 subpart 1 2
b: specifying or setting out a method of calculation for how mediation costs incurred under section 46
c: prescribing 1 or more dispute resolution schemes for the purpose of section 46
d: providing for any other matters contemplated by this Act, necessary for its administration, or necessary for giving it full effect.
2: The Minister may make a recommendation under this section only if the Minister has consulted any fuel industry participants that the Minister considers are likely to be significantly affected by the regulations.
3: Regulations under this section are secondary legislation ( see Part 3 The following table is small in size and has 3 columns that are grouped under the heading Legislation Act 2019 requirements for secondary legislation made under this section. Legislation Act 2019 requirements for secondary legislation made under this section Publication PCO must publish it on the legislation website and notify it in the Gazette LA19 s 69(1)(c) Presentation The Minister must present it to the House of Representatives LA19 s 114 cl 32(1)(a) Disallowance It may be disallowed by the House of Representatives LA19 ss 115 116 This note is not part of the Act. Section 47(3) inserted 28 October 2021 section 3 Secondary Legislation Act 2021
48: Differential regulations
1: Regulations made under this Act may make different provision for different cases on any differential basis.
2: Without limiting subsection (1), regulations made under this Act—
a: may prescribe requirements for a particular engine fuel or a class or classes of engine fuels; or
b: may prescribe different requirements for different engine fuels or classes of engine fuels; or
c: may prescribe different requirements for different fuel industry participants or other persons, or classes of such persons; or
d: may prescribe different requirements for different retail fuel sites or classes of such sites.
49: Chief executive may approve forms
For the purposes of this Act, the chief executive may approve forms of applications, notices, and other documents required for the purposes of this Act. 1986 No 5 s 109
50: This Part does not apply to Part 4 matters
This Part does not apply to any matters under Part 4 sections 69(3) 70 Section 50 inserted 1 July 2024 section 13 Fuel Industry (Improving Fuel Resilience) Amendment Act 2023
4: Promotion of resilience of engine fuel supplies in New Zealand
Part 4 inserted 1 July 2024 section 14 Fuel Industry (Improving Fuel Resilience) Amendment Act 2023
1: Preliminary provision
Subpart 1 inserted 1 July 2024 section 14 Fuel Industry (Improving Fuel Resilience) Amendment Act 2023
51: Interpretation
In this Part, unless the context otherwise requires,— compliance period
a: during the initial period, means a calendar month:
b: after the initial period, means the compliance period specified in the regulations fuel importer information disclosure requirement subpart 3 section 63 initial period subpart 2
a: the date on which regulations provide that the initial period ends in respect of that type of fuel:
b: the end of the 5-year period referred to in section 61 minimum level of cover
a: the minimum number of days for the initial period is set in section 57(3)
b: the minimum number of days after the initial period is set in the regulations obligation fuel section 54 obliged person section 53 regulations subpart 6 stockholding obligation obligation subpart 2 Section 51 inserted 1 July 2024 section 14 Fuel Industry (Improving Fuel Resilience) Amendment Act 2023
2: Stockholding obligation
Subpart 2 inserted 1 January 2025 section 14 Fuel Industry (Improving Fuel Resilience) Amendment Act 2023 Application Heading inserted 1 January 2025 section 14 Fuel Industry (Improving Fuel Resilience) Amendment Act 2023
52: Purpose of this subpart
The purpose of this subpart is to promote the resilience of engine fuel supplies by requiring certain fuel industry participants to hold a certain level of engine fuel stocks in New Zealand to mitigate the risk of fuel supply disruptions. Section 52 inserted 1 January 2025 section 14 Fuel Industry (Improving Fuel Resilience) Amendment Act 2023
53: Persons to which obligation applies
1: During the initial period, this subpart applies to every fuel industry participant (an obliged person
a: is a fuel importer of a type of obligation fuel; and
b: owns or operates a bulk storage facility for that type of obligation fuel or has the right to draw that type of obligation fuel at a bulk storage facility.
2: After the initial period, this subpart applies to every fuel industry participant (an obliged person
a: that is of a type described in subsection (1); or
b: that is of an additional type or types specified in the regulations.
3: The Minister may recommend regulations for the purpose of subsection (2)(b) only if the Minister is satisfied that—
a: fuel industry participants of that type or those types supply (in the form of production or import) a significant volume of fuels to the New Zealand fuel market (that is, their market share must be significant); and
b: the fuel supplied by fuel industry participants of that type constitute a significant proportion of the energy used by the transport sector in New Zealand. Section 53 inserted 1 January 2025 section 14 Fuel Industry (Improving Fuel Resilience) Amendment Act 2023
54: Fuel on which obligation is based
This subpart applies to the following types of engine fuel ( obligation fuel
a: during the initial period, the types referred to in section 57(2)
b: after the initial period, any type or types that are specified by the regulations to be obligation fuels. Section 54 inserted 1 January 2025 section 14 Fuel Industry (Improving Fuel Resilience) Amendment Act 2023
55: Disregarded fuels
The following are disregarded for the purpose of this Part and the regulations:
a: fuel held under an agreement with the Crown for the purpose of compliance by the Crown with New Zealand’s obligation, under Article 2 of the International Energy Agreement (within the meaning given in section 2
b: fuel imported for consumption by the Crown (for example, by the New Zealand Defence Force). Section 55 inserted 1 January 2025 section 14 Fuel Industry (Improving Fuel Resilience) Amendment Act 2023 Imposition of stockholding obligation Heading inserted 1 January 2025 section 14 Fuel Industry (Improving Fuel Resilience) Amendment Act 2023
56: Imposition of obligation
Each obliged person must hold minimum stock, of each type of obligation fuel in respect of which it is an obliged person, at a level that is sufficient to sustain the minimum level of cover required by this Part and the regulations. Section 56 inserted 1 January 2025 section 14 Fuel Industry (Improving Fuel Resilience) Amendment Act 2023
57: Initial obligation
1: This section sets the stockholding obligation for the initial period.
2: The types of obligation fuel to which the initial stockholding obligation applies are—
a: diesel (within the meaning of regulation 5(1)
b: petrol (within the meaning of regulation 5(1)
c: aviation kerosene (being kerosene-type fuel that is used in aviation turbine engines).
3: The required number of days of demand or consumption, for the purpose of the minimum level of cover, is—
a: 21 for diesel:
b: 28 for petrol:
c: 24 for aviation kerosene.
4: The formula for translating minimum level of cover to the required minimum stockholding volume for each obliged person and each fuel type is— a = b × c where— a is the obliged person’s stockholding obligation (that is, the minimum stock of the fuel type (measured in thousands of litres) that the person must hold, on an average basis, during the compliance period to sustain the minimum level of cover required by this Part and the regulations), where average b is the required number of days that is referred to in subsection (3) for the fuel type and for the purpose of the minimum level of cover c is the obliged person’s average daily demand or consumption (that is, the obliged person’s average daily drawings from bulk storage facilities in New Zealand at which the obliged person has the right to draw fuel, during the 12-month period that ends 4 months before the compliance period begins, of the fuel type (measured in thousands of litres per day)).
5: Engine fuel counts as minimum stock if—
a: the stock is—
i: in a bulk storage facility in New Zealand; or
ii: fuel cargo in a vessel within New Zealand’s exclusive economic zone that is scheduled for delivery to a New Zealand port; and
b: the fuel complies with any requirements of the regulations for counting fuel as minimum stock. Section 57 inserted 1 January 2025 section 14 Fuel Industry (Improving Fuel Resilience) Amendment Act 2023
58: Regulations relating to stockholding obligation
1: The regulations may provide for matters relating to the stockholding obligation, including all or any of the following matters:
a: for any period and any fuel,—
i: how each obliged person’s stockholding obligation must be calculated for each compliance period:
ii: requirements relating to circumstances, characteristics, location, and ownership or drawing rights for counting fuel as minimum stock:
iii: when the initial period ends:
b: for each period after the initial period,—
i: the type or types of engine fuel that are obligation fuels (which may be prescribed by reference to either or all of the circumstances or characteristics of the fuel or other matters):
ii: the type or types of fuel industry participant that are obliged persons in respect of obligation fuel (in which case, section 53(3)
iii: matters relating to the minimum level of cover required.
2: The regulations may provide—
a: different obligations for different types of things (for example, different stockholding levels for different fuels at different locations or for different periods); and
b: for recalculation of obligations (for example, if a person ceases to be an obliged person, for the recalculation of other persons’ obligations).
3: The Minister may recommend regulations for matters referred to in this section only if—
a: the Minister has had regard to the resilience of supplies of each type of obligation fuel; and
b: the Minister has had regard to the current or recent commercial stockholding levels for that type of fuel; and
c: the Minister considers that the stockholding obligation balances the following objectives:
i: that there are sufficient engine fuel stocks available in New Zealand to meet demand and to adequately manage the impacts of plausible fuel supply disruption scenarios; and
ii: that the economic costs associated with complying with the stockholding obligation are not disproportionate. Section 58 inserted 1 January 2025 section 14 Fuel Industry (Improving Fuel Resilience) Amendment Act 2023
59: Exemptions from stockholding obligation
1: The Minister may exempt by notice an obliged person, or a class of obliged persons, from all or any of their stockholding obligation.
2: The Minister may grant the exemption only if—
a: the Minister is satisfied that exceptional circumstances beyond the reasonable control of the obliged person have prevented, or are likely to prevent, the obliged person from complying with the obligation, for example,—
i: a natural disaster that has affected fuel storage facilities, or a crisis that has affected international shipping routes; or
ii: other exceptional circumstances prescribed in the regulations; and
b: the Minister has taken into account—
i: the impact of the circumstances on fuel imports and fuel storage capacity; and
ii: the duration of the circumstances; and
iii: the level of control of the fuel importer over the circumstances; and
iv: the time required to achieve compliance with the obligation; and
v: the impact on fuel resilience in regions; and
c: the Minister is satisfied that—
i: there is good reason for granting the exemption that outweighs the interests of the public in having the obligation met; and
ii: the extent of the exemption is not broader than is reasonably necessary to address the matters that gave rise to the exemption.
3: The regulations may prescribe—
a: circumstances in which exemptions may be granted:
b: matters related to the process for exemptions:
c: the maximum period during which an exemption may continue in force:
d: when and how other obliged persons’ stockholding obligations may be recalculated as a result of an exemption.
4: The Minister may grant the exemption unconditionally or subject to any conditions that the Minister may prescribe in the notice.
5: The Minister’s reasons for granting the exemption (including why the exemption is appropriate) must be published together with the exemption.
6: An exemption granted under this section is secondary legislation ( see Part 3 The following table is small in size and has 3 columns that are grouped under the heading Legislation Act 2019 requirements for secondary legislation made under this section. Legislation Act 2019 requirements for secondary legislation made under this section Publication The maker must publish it in accordance with the Legislation (Publication) Regulations 2021 LA19 s 74(1)(aa) Presentation The Minister must present it to the House of Representatives LA19 s 114 Disallowance It may be disallowed by the House of Representatives LA19 ss 115 116 This note is not part of the Act. Section 59 inserted 1 January 2025 section 14 Fuel Industry (Improving Fuel Resilience) Amendment Act 2023 Entitlement agreements Heading inserted 1 January 2025 section 14 Fuel Industry (Improving Fuel Resilience) Amendment Act 2023
60: Entitlement agreements as mechanism for meeting obligations
1: This section applies if an obliged person enters into an agreement with another person that records a transfer of the right to count an amount of fuel stocks for the purpose of complying with a stockholding obligation.
2: Only the transferee of the right is treated as the holder of the stock (for the purpose of counting the amount towards compliance with the stockholding obligation after the transfer). Example 1
A and B are both obliged persons and an agreement records a transfer from A to B of the right to count an amount of fuel stocks for the purpose of complying with a stockholding obligation. Only B holds the amount for the purpose of compliance with the stockholding obligation after the transfer. Example 2
A fuel importer sells an amount of imported stock to a consignor who will maintain ownership of the stock in a bulk supply facility until it is drawn down by the fuel importer. The agreement records a transfer from the consignor to the fuel importer of the right to be considered the holder of the amount for the purpose of complying with a stockholding obligation. Only the fuel importer is treated as the holder of that amount for that purpose (despite the consignor being the owner of the stock).
3: The regulations may set requirements related to entitlement agreements and their use. Section 60 inserted 1 January 2025 section 14 Fuel Industry (Improving Fuel Resilience) Amendment Act 2023 Review Heading inserted 1 January 2025 section 14 Fuel Industry (Improving Fuel Resilience) Amendment Act 2023
61: Review
1: The Minister must review the stockholding obligation within 5 years after the commencement of this subpart.
2: The review of the stockholding obligation must take into account the following considerations:
a: the Government's emissions budget and emissions reduction plan:
b: fuel demand in New Zealand:
c: the fuel mix for the transport fleet:
d: any relevant data and findings on the resilience of supply chains, such as national and regional fuel stocks data and reports on resilience of international and domestic fuel supply chains:
e: domestic fuel production capacity. Section 61 inserted 1 January 2025 section 14 Fuel Industry (Improving Fuel Resilience) Amendment Act 2023
3: Information disclosure requirements for purpose of this Part
Subpart 3 inserted 1 July 2024 section 14 Fuel Industry (Improving Fuel Resilience) Amendment Act 2023
62: Obligation to comply with information disclosure requirements
1: Every fuel industry participant to which requirements prescribed by the regulations apply must comply with those requirements.
2: Without limiting subsection (1), a fuel industry participant must disclose information to the chief executive in any circumstances prescribed by the regulations.
3: The fuel industry participant must disclose the information in any form and manner specified by the chief executive. 2020 No 60 s 26 Section 62 inserted 1 July 2024 section 14 Fuel Industry (Improving Fuel Resilience) Amendment Act 2023
63: Information disclosure requirements may be prescribed
1: The regulations may prescribe requirements relating to record keeping, and the retention and disclosure of information, about the resilience of engine fuel supplies in New Zealand, including—
a: fuel stocks of industry participants identified in regulations and obliged persons at national, regional, and bulk storage facility levels:
b: international supply chains:
c: contingency arrangements (such as compliance plans):
d: any other information considered necessary for planning and implementing the stockholding obligation.
2: In particular, the regulations may prescribe—
a: the kinds of fuel industry participants, the engine fuels, and other matters that the regulations apply to:
b: the information that must be recorded and retained:
c: the methodologies that must be applied in recording the information:
d: the circumstances in which information must be disclosed to the chief executive (for example, when requested by the chief executive, at a specified time, or on the occurrence of a specified event):
e: requirements for the contents of information disclosed to the chief executive to be independently assessed for accuracy and certified by an auditor who is approved by the chief executive (in the prescribed manner, if any, for that purpose):
f: requirements relating to the publication of information that is required to be disclosed to the chief executive.
3: The Minister may recommend regulations only if the Minister has had regard to the need for—
a: transparency and timeliness of information about fuel industry participants’ fuel stockholding levels at national, regional, and bulk storage facility levels and at specific locations (such as Auckland International Airport):
b: information required for assessing the adequacy of fuel stockholding levels in New Zealand for meeting New Zealand demand in a plausible fuel supply disruption scenario. 2020 No 60 s 27 Section 63 inserted 1 July 2024 section 14 Fuel Industry (Improving Fuel Resilience) Amendment Act 2023
64: Publication of analysis or summary
The chief executive may,—
a: for the purpose of this Part, analyse and summarise any information disclosed to them under this subpart; and
b: publish any resulting analysis or summary. 2020 No 60 s 28 Section 64 inserted 1 July 2024 section 14 Fuel Industry (Improving Fuel Resilience) Amendment Act 2023
4: Pecuniary penalties under this Part
Subpart 4 inserted 1 July 2024 section 14 Fuel Industry (Improving Fuel Resilience) Amendment Act 2023
65: Pecuniary penalties under this Part
1: The High Court may, on the application of the chief executive, order a person to pay to the Crown a civil pecuniary penalty if satisfied that the person—
a: has contravened any of the provisions of the following:
i: the stockholding obligation:
ii: an information disclosure requirement; or
b: has attempted to contravene any of those provisions; or
c: has aided, abetted, counselled, or procured any other person to contravene any of those provisions; or
d: has induced, or attempted to induce, any other person, whether by threats or promises or otherwise, to contravene any of those provisions; or
e: has been in any way, directly or indirectly, knowingly concerned in, or party to, the contravention by any other person of any of those provisions; or
f: has conspired with any other person to contravene any of those provisions.
2: The amount of any pecuniary penalty must not exceed,—
a: in the case of an individual, $100,000 for each act or omission; or
b: in any other case, the greater of the following for each act or omission:
i: $5 million:
ii: either,—
A: if it can be readily ascertained and if the court is satisfied that the contravention occurred in the course of producing a commercial gain, 3 times the value of any commercial gain resulting from the contravention; or
B: if the commercial gain cannot readily be ascertained, 10% of the turnover of the person and all its interconnected bodies corporate (if any) in each accounting period in which the contravention occurred.
3: In determining an appropriate penalty under this subpart, the court must have regard to all matters referred to in section 30(6)
4: Sections 30(7) and (8) 31 34 40(c) Section 65 inserted 1 July 2024 section 14 Fuel Industry (Improving Fuel Resilience) Amendment Act 2023
5: Enforceable undertakings
Subpart 5 inserted 1 July 2024 section 14 Fuel Industry (Improving Fuel Resilience) Amendment Act 2023
66: Chief executive may accept undertakings
1: The chief executive may accept a written undertaking given by, or on behalf of, a person in connection with any matter relating to the enforcement of this Part.
2: The person may withdraw or vary the undertaking with the consent of the chief executive. 1986 No 5 s 74A Section 66 inserted 1 July 2024 section 14 Fuel Industry (Improving Fuel Resilience) Amendment Act 2023
67: Matters included in undertakings
1: An undertaking under section 66
a: an undertaking (which may include a compliance plan) to take action to avoid, remedy, or mitigate any actual or likely contravention, or possible contravention, of this Part:
b: an undertaking to pay to the chief executive all or part of the chief executive’s costs incurred in investigating, or bringing proceedings in relation to, a contravention, or possible contravention, of this Part.
2: If the chief executive accepts an undertaking that involves payment of the chief executive’s costs, the chief executive must make the following information publicly available:
a: the amount of the chief executive’s costs that has been undertaken to be paid; and
b: a brief description of the circumstances and nature of the contravention or possible contravention of this Part to which the undertaking relates.
3: In this section, a contravention
a: an actual contravention:
b: aiding, abetting, counselling, or procuring a contravention:
c: inducing a contravention, whether by threats, promises, or otherwise:
d: being in any way, directly or indirectly, knowingly concerned in, or party to, a contravention:
e: conspiring with any other person in a contravention. 1986 No 5 s 74B Section 67 inserted 1 July 2024 section 14 Fuel Industry (Improving Fuel Resilience) Amendment Act 2023
68: Enforcement of undertakings
1: If the chief executive considers that a person has breached an undertaking given under section 66
2: The court may make any 1 or more of the following orders if it is satisfied that the person has breached a term of the undertaking:
a: an order directing the person to comply with the term:
b: an order directing the person to pay to the Crown an amount not exceeding the amount of any financial benefit that the person has obtained directly or indirectly and that is reasonably attributable to the breach. 1986 No 5 s 74C Section 68 inserted 1 July 2024 section 14 Fuel Industry (Improving Fuel Resilience) Amendment Act 2023
6: Regulations and other miscellaneous provisions
Subpart 6 inserted 1 July 2024 section 14 Fuel Industry (Improving Fuel Resilience) Amendment Act 2023
69: Regulations under this Part
1: The Governor-General may, by Order in Council made on the recommendation of the Minister, make regulations—
a: providing for anything that this Part says may or must be provided for by regulations:
b: providing for anything incidental that is necessary for carrying out, or giving full effect to, this Part.
2: The Minister may recommend regulations under this Part only if—
a: the Minister has consulted any fuel industry participants that the Minister considers are likely to be significantly affected by the regulations; and
b: the Minister is satisfied that the regulations are necessary or desirable after having regard to the purpose of this Part and to the relevant costs and benefits.
3: Section 48
4: Regulations made under this section are secondary legislation ( see Part 3 2002 No 40 s 168(1)(k), (l), (2) The following table is small in size and has 3 columns that are grouped under the heading Legislation Act 2019 requirements for secondary legislation made under this section. Legislation Act 2019 requirements for secondary legislation made under this section Publication PCO must publish it on the legislation website and notify it in the Gazette LA19 s 69(1)(c) Presentation The Minister must present it to the House of Representatives LA19 s 114 Disallowance It may be disallowed by the House of Representatives LA19 ss 115 116 This note is not part of the Act. Section 69 inserted 1 July 2024 section 14 Fuel Industry (Improving Fuel Resilience) Amendment Act 2023
70: Chief executive may approve forms
Section 49 Section 70 inserted 1 July 2024 section 14 Fuel Industry (Improving Fuel Resilience) Amendment Act 2023
5: General provisions
Part 5 inserted 1 July 2024 section 14 Fuel Industry (Improving Fuel Resilience) Amendment Act 2023 Information sharing Heading inserted 1 July 2024 section 14 Fuel Industry (Improving Fuel Resilience) Amendment Act 2023
71: Information sharing between Commission and chief executive
1: The Commission and the chief executive, and any other person with functions, powers, or duties under this Act, may use any information provided under this Act, or a copy of any document provided under this Act, for any purpose of this Act.
2: The Commission may provide to the chief executive, and the chief executive may provide to the Commission, any information, or a copy of any document, that the Commission or the chief executive (as the case may be)—
a: holds in relation to the exercise of powers, or the performance of functions and duties, in respect of this Act; and
b: considers may assist the other for any purpose of this Act.
3: The Commission or the chief executive must not provide any information or document under this section unless satisfied that appropriate protections are or will be in place to maintain the confidentiality of the information or document (including information that is personal information within the meaning of the Privacy Act 2020 Section 71 inserted 1 July 2024 section 14 Fuel Industry (Improving Fuel Resilience) Amendment Act 2023
72: Sharing of information and documents with other entities
1: The chief executive may provide to a public service agency or a statutory entity (other than the Commission) any information, or a copy of any document, that the chief executive—
a: holds in relation to the performance or exercise of the chief executive’s functions, powers, or duties under this Act or any other legislation; and
b: considers may assist the public service agency or statutory entity in the performance or exercise of its functions, powers, or duties under any legislation.
2: The chief executive may provide information, or a copy of a document, under this section only if satisfied that—
a: doing so will not substantially affect the performance of their functions; and
b: appropriate protections are or will be in place to maintain the confidentiality of the information or document provided (in particular, information that is personal information within the meaning of the Privacy Act 2020
3: The chief executive may use any information, or a copy of any document, in the chief executive’s performance or exercise of their functions, powers, or duties under any legislation if the information or copy is provided to the chief executive by a public service agency or a statutory entity (other than the Commission).
4: In this section,— public service agency section 5 statutory entity Schedule 1 1986 No 5 s 99AA Section 72 inserted 1 July 2024 section 14 Fuel Industry (Improving Fuel Resilience) Amendment Act 2023
73: Effect of information sharing provisions
1: Sections 71 72
2: Nothing in section 71 72
a: the Privacy Act 2020
b: section 99AA
c: any provision of this Act or any other legislation that allows the use or disclosure of information (for example, section 17 Section 73 inserted 1 July 2024 section 14 Fuel Industry (Improving Fuel Resilience) Amendment Act 2023


1: Title
This Act is the New Zealand Public Health and Disability Amendment Act 2020.
2: Commencement
This Act comes into force on 30 September 2020.
3: Principal Act
This Act amends the New Zealand Public Health and Disability Act 2000 principal Act 2020-09-30 New Zealand Public Health and Disability Act 2000 Amendment to New Zealand Public Health and Disability Act 2000
4: Part 4A repealed
Repeal Part 4A Consequential amendments
5: Consequential amendments to Support Workers (Pay Equity) Settlement Act 2017
1: This section amends the Support Workers (Pay Equity) Settlement Act 2017
2: In section 5 employer (for example, under a family care policy within the meaning of that term in section 70B of the New Zealand Public Health and Disability Act 2000)
3: Repeal section 9A(3) 2020-09-30 Support Workers (Pay Equity) Settlement Act 2017