The fuel security services payment (FSSP) for domestic refiners began on 1 July 2021. This support is one of the measures in the Australian Government’s Fuel Security Package 2021-22.
The FSSP secures Australia’s long-term refining capabilities. It does this by paying refiners during loss-making periods, based on how much FSSP fuel they produce.
FSSP fuels are petrol, diesel and jet fuel. To receive the FSSP, domestic refineries must commit to keep operating until at least 30 June 2027, with the option to extend this to 30 June 2030.
The FSSP is calculated by looking at market conditions to determine if refineries require support during a quarter. The payment provides support only when conditions are poor. Crude oil prices, fuel prices, freight costs, refinery yields and other operating factors are considered when assessing market conditions.
An adjustable payment rate between 0 and 1.8 cents per litre is calculated based on these conditions. This rate is then multiplied by the number of litres of FSSP fuel refined in the quarter to determine the total payment. The Fuel Security (Fuel Security Services Payment) Rules 2021 set out how the payment rate is calculated.
The government will make quarterly payments to refiners until the end of their commitment period.
All payments made to refiners are published quarterly on energy.gov.au.
To be eligible for the FSSP, refiners must:
- commit to operating until at least 30 June 2027
- be a constitutional corporation
- refine FSSP fuels (petrol, diesel and jet fuel) in Australia
- refine FSSP fuels as prescribed by relevant legislation, and
- meet any other requirements set in legislative rules.
Refiners have to meet these requirements at all times during their commitment period.
To request an application form please contact firstname.lastname@example.org.
Obligations for refiners
The following information applies to refiners who have been approved to receive the FSSP.
The department will use information reported under the Petroleum and Other Fuels Reporting Act 2017 and Rules to calculate whether a refiner can get a quarterly payment. This reporting includes how much FSSP fuel the refiner has produced in each quarter.
Refiners must notify the department if one or more of the following events occur, or are likely to occur:
- change in ownership or legal status
- the refiner permanently stops refining one or more FSSP fuels
- the refiner stops refining one or more FSSP fuels for more than 24 hours (whether this is voluntary or not)
- a force majeure or material adverse change, which may result in the closure of the refinery (these events are listed in the FSSP Rules)
- a change that impacts a corporation’s ability to meet the obligations in the financial deed.
Refiners must give this notice within the relevant timeframe in the legislation.
If a refinery permanently stops refining all FSSP fuels during the commitment period, they may have to repay the FSSP, depending on the reasons they stopped refining.