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Fuel Security Services Payment

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The Fuel Security Services Payment (FSSP) for domestic refiners began on 1 July 2021 and is delivered through the Fuel Security Act 2021.

The FSSP secures Australia’s long-term refining capabilities. It does this by paying refiners a production payment during loss-making periods based on the number of litres of FSSP fuels they produce.

FSSP fuels are petrol, diesel and jet fuel. To receive the FSSP, domestic refiners must commit to keep operating until at least 30 June 2027, with the option to extend this to 30 June 2030. The FSSP will continue for the duration of their commitment period.

The quarterly calculation of the FSSP determines if refiners are eligible to receive a payment for the previous quarter. This calculation takes into account external market conditions (such as the price of fuel and crude oil, and freight costs), as well as refinery yields and other operating factors.

The calculation yields an adjustable payment rate between 0 and 1.8 cents per litre which is 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 sets out how the payment rate is calculated.

All payments made to refiners are published quarterly on energy.gov.au.

Eligible refiners

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 fuelsecurity@industry.gov.au.

Obligations for refiners

The following information applies to refiners who have been approved to receive the FSSP.

Reporting

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.

Notifications

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.

Repayments

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. 

FSSP amounts paid

The table below lists the total amount paid under the FSSP to refiners for fuel refined each quarter from 1 July 2021 until the end of their commitment periods.

This will be updated on a quarterly basis in line with legislated requirements under the Fuel Security Act 2021.

Quarter

Year

Total amount paid under the Fuel Security
Services Payment for the quarter (GST excl.)

Quarter 1

2021-22

$12,445,665.73

Quarter 2

2021-22

$0

Quarter 3

2021-22

$0

Quarter 4

2021-22

$0