Petroleum Excise (Prices) Act 1987

PART II - DETERMINATION OF PRICES  

SECTION 7   MINISTER ETC. TO DETERMINE VOLWARE PRICES  

7(1)    

A reference in this section to the volume weighted average of realised prices for a month and an oil producing region is a reference to the amount (expressed as an amount of Australian dollars, calculated to the nearest cent, per kilolitre) obtained by dividing the sum of the transaction prices in respect of quantities of excisable crude petroleum oil obtained from that region that are entered for home consumption during the month by the total volume of that oil.

7(2)    

The Minister, or a person authorised by the Minister to exercise the Minister ' s powers under this section, shall, not later than one month after the end of each month occurring after the VOLWARE commencement date in relation to an oil producing region, determine a price in relation to that month and that region, to be known as the interim VOLWARE price for that month and that region, being an estimate by the Minister or authorised person, on the basis of the information available to him or her at the time (being information obtained pursuant to section 6 or otherwise), of the amount that will finally be determined to be the volume weighted average of realised prices for that month and that region.

7(2A)    

Nothing in this section implies that the Minister, or a person authorised by the Minister to exercise the Minister ' s powers under this section, cannot determine an interim VOLWARE price for a month and an oil producing region at any time during the month concerned, whether or not there is available at that time any information concerning the prices for which excisable crude petroleum oil obtained from that region and entered for home consumption during that month has been sold, or is likely to be sold.

7(3)    

The Minister, or a person authorised by the Minister to exercise the Minister ' s powers under this section, shall, not later than 6 months after the end of each month occurring after the VOLWARE commencement date in relation to an oil producing region, determine a price in relation to that month and that region, to be known as the final VOLWARE price for that month and that region, being the final determination by the Minister or authorised person of the volume weighted average of realised prices for that month and that region.

7(3A)    

In spite of subsections (2) and (3) , neither the Minister nor a person authorised by the Minister to exercise the Minister ' s powers under this section is required to determine an interim VOLWARE price, or a final VOLWARE price, in respect of an oil producing region and a month if, at all times during that month:

(a)    if the region consists of a single production area - there is in force a declaration under subsection 6(1B) that that area is a limited production area; or

(b)    if the region consists of 2 or more production areas - there are in force declarations under subsection 6(1B) that each of those areas is a limited production area.

7(3B)    

Nothing in subsection (3A) affects the obligation of the Minister or of a person authorised by the Minister to exercise the Minister ' s powers under this section to determine an interim VOLWARE price, or a final VOLWARE price, in respect of an oil producing region and a month if a declaration under subsection 6(1B) relating to a production area in that region that was in force during that month is subsequently revoked.

7(4)    

A determination of the final VOLWARE price for a month and an oil producing region shall not be made unless:

(a)    the Minister or authorised person is satisfied that accurate and complete information concerning all of the transactions relevant to determining the price has become available to the Minister or authorised person; or

(b)    5 months and 20 days have passed since the end of that month and information that the Minister or authorised person is satisfied is accurate and complete concerning all of those transactions has not yet become available to the Minister or authorised person.

7(5)    

Subject to subsection (6) , the regulations may provide for:

(a)    the manner in which transaction prices for quantities of excisable crude petroleum oil are to be calculated for the purposes of determining the volume weighted average of realised prices for a month and an oil producing region; and

(b)    the manner in which the total volume of excisable crude petroleum oil is to be calculated for the purposes of such a determination.

7(6)    

In determining the volume weighted average of realised prices for a month and an oil producing region, the Minister or authorised person may fix, for the purposes of the determination, the transaction price in respect of a quantity of excisable crude petroleum oil obtained from that region, being a price that he or she considers to be fair and reasonable, in substitution for a price set out in information given under section 6 if he or she considers that:

(a)    the parties to any transaction concerning the oil were not dealing at arm ' s length in relation to that transaction; and

(b)    the price set out is less than the amount that could reasonably be expected to be the price if the parties had been dealing at arm ' s length.

7(7)    
Where the Minister or authorised person fixes a price for a transaction under subsection (6) , he or she shall notify the oil producer in writing of the fixing of the price, giving the reasons for it.

7(8)    

The fact that a transaction price for a particular transaction has not been fixed, under subsection (6) , for the purpose of determining the interim VOLWARE price for a month and an oil producing region does not preclude the fixing of a transaction price for that transaction, under subsection (6) , for the purposes of determining the final VOLWARE price for that month and that region.

7(9)    
Subject to subsection (10) , the Minister, or a person authorised by the Minister to exercise the Minister ' s powers under this section, may, at any time after a final VOLWARE price is determined under subsection (3) , amend the determination if he or she is satisfied that the determination is incorrect because of:

(a)    the making of an error in calculation or a mistake of fact; or

(b)    the giving of information that was inaccurate or incomplete to the Minister or authorised person.

7(10)    
The Minister or authorised person shall not, under subsection (9) , amend a determination after the expiration of 3 years from the day on which the determination was made unless he or she is satisfied that the determination is incorrect because information given to the Minister or authorised person is inaccurate or incomplete due to the fraud or evasion of an oil producer.

7(11)    
For the purposes of this Act (other than subsection (9) of this section) and the Acts referred to in section 3 , where a determination has been amended under subsection (9) , it has effect, as so amended, as a determination under subsection (3) .