Where disputes cannot be resolved between the parties, the dispute resolution scheme in the Oilcode provides the downstream petroleum retail industry with an effective and relatively inexpensive way of resolving disputes through the appointment of a mediator to assist the parties.
The Oilcode generally requires parties to first attempt to resolve the dispute themselves. As an alternative to potentially costly and time-consuming litigation, the Oilcode provides for the appointment of a Dispute Resolution Adviser (DRA) to facilitate and expedite the resolution of disputes arising in relation to commercial activities outlined within the Oilcode.
If no resolution is reached, parties can notify the DRA, who then appoints a person to provide mediation or other assistance. The primary role of the DRA is to provide a central point of contact for the industry to resolve disputes. The DRA can make a non-binding determination on the disputes it hears. Parties must then work with the appointed person to try to resolve the dispute. All mediation and assistance must be carried out in good faith.
Statements made by parties while trying to resolve their dispute under the scheme are not admissible as evidence in a criminal proceeding or proceeding for the imposition of a penalty. (The only exception to this is for a proceeding in respect of the falsity of the statement.) The dispute resolution scheme does not prohibit anyone from going directly to the ACCC or from taking private legal action for a breach of the Oilcode or the Act (the scheme does not apply to disputes relating to pricing issues such as allegations of predatory pricing activities and concerns about below cost selling of declared petroleum products.)
