The Australian Government is accelerating support for local oil refineries as part of its commitment to jobs, affordable fuel and Australia’s long-term fuel security.
The government will provide relief to the refining sector by bringing forward the production payments announced as part of a comprehensive fuel security package in the 2020-21 Budget. Support will begin on 1 January 2021.
The Hon Angus Taylor MP, Minister for Energy and Emissions Reduction, said the government was taking immediate action to keep our refineries operating.
‘The COVID-19 pandemic continues to place immense pressure on our refineries and the many Australians employed in the fuel sector,’ the Minister said.
‘The production payments will help the industry withstand the economic shock of this crisis, protecting local jobs and industry, bolstering our fuel security and shielding motorists from higher prices.’
The support will be provided through a minimum one-cent payment for each litre of primary transport fuel from the major refineries who continue operations in Australia.
To receive the payment, refineries must agree to continue to operate for the duration of the program. Support is also contingent on refineries committing to an open-book process to further inform the development of the long-term package.
For more information, see the Minister’s media release.