ACCC permits collaboration on AdBlue supplies

THE Australian Competition and Consumer Commission (ACCC) has granted an urgent interim authorisation permitting producers and other industry stakeholders to collaborate on arrangements for the supply of the Diesel Exhaust Fluid (DEF), commonly known by the trade name ‘AdBlue’.

 

DEF (AdBlue) shortages and rationing have been widely reported since November, the ACCC announcing via a media statement late last year that it would allow manufacturers and suppliers of refined urea – a key ingredient in DEF – to work together to develop solutions to any potential future shortages.

 

The supply of DEF – which is used in many modern diesel engines to control noxious emissions – is currently the subject of a global supply shortfall, the limitation of availability in markets including Australia already impacting agricultural operations, freight and logistic operations, ambulance and firefighting services, and the private transportation sector (more information is available via the links at the bottom of the page). 

 

The ACCC says its latest action is part of a coordinated government and industry response to current global pressures on the supply of urea.

 

“The ACCC’s interim authorisation allows AdBlue manufacturers to cooperate in a number of ways without the risk of breaching competition laws,” ACCC chairperson Rod Sims said.

 

“This permits the industry, in conjunction with government, to co-ordinate and respond more quickly and effectively to any supply constraints of urea.”

 

Following the interim authorisation, the parties can collaborate on issues such as sharing information about stock levels, supply channels and manufacturing opportunities, prioritising access to refined urea and AdBlue according to need, collaborating on the production of AdBlue and implementing sales limits.

 

“This enables AdBlue manufacturers and the Australian Government to consider the best way to respond to any potential future supply constraints,” Mr Sims added.

 

“The manufacturers’ co-ordination of their response with the Government is an important step in providing a regular supply of AdBlue which is critical to our nation’s transportation sector, food production and the broader economy.

 

“Importantly the coordination allowed under the interim authorisation can only occur with the oversight of the Federal Government,” he cautioned.

 

Mr Sims said DEP manufacturers and suppliers are required to invite the ACCC to any meetings where these issues are discussed and that authorisation has not been sought, nor interim authorisation granted, for DEP manufacturers and suppliers to share information about or reach agreements on price, adding that any AdBlue producers found to be exploiting or profiting from the ongoing shortage could be found to be engaging in unconscionable conduct.

 

Mr Sims urged anyone concerned about over-inflated AdBlue pricing to contact the ACCC immediately.