The Australian Government is boosting the nation’s long-term fuel security by locking in the future of the refining sector.
The government’s fuel security package will help secure Australia’s sovereign fuel stocks, maintain jobs and protect families and businesses from higher fuel prices.
The package will protect 1250 jobs across two refineries, Ampol in Lytton (Qld) and Viva Energy in Geelong (Vic). It will also create 1750 construction jobs.
Prime Minister Scott Morrison said the government was delivering on its commitment to maintain a self-sufficient refining capability in Australia.
‘Earlier investment in Australia’s ability to produce better quality fuels, including ultra-low sulfur levels, will also improve air quality and deliver an estimated $1 billion in lower health costs,’ the Prime Minister said.
‘Major industries like agriculture, transport and mining, as well as mum and dad motorists, will have more certainty and can look forward to vehicle maintenance savings and greater choice of new vehicle models.’
2021-22 Budget initiatives include:
- a variable Fuel Security Service Payment (FSSP) to the refineries
- Up to $302 million in support for major refinery infrastructure upgrades to help refiners bring forward the production of better-quality fuels from 2027 to 2024
- $50.7 million for the implementation and monitoring of the FSSP and the minimum stockholding obligation (MSO), ensuring industry complies with the new fuel security framework.
The variable FSSP has been costed up to AUD$2.047 billion to 2030 in a worst-case scenario.
Refineries will have an option to extend the support and their commitment out to mid-2030.
To read more, see the Ministers’ media release.