Support for local oil refineries is being stepped up in a bid to ensure affordable fuel and Australia’s long-term fuel security.
The Australian Government will provide relief to the oil refining sector by bringing forward the production payments announced as part of the fuel security package in the 2020-21 Budget, with support to begin on 1 January 2021.
Minister for Energy and Emissions Reduction Angus Taylor said the Government was taking immediate and decisive action to keep our domestic refineries operating.
“The COVID-19 pandemic continues to place immense pressure on our refineries and the many Australians employed in the fuel sector,” Minister Taylor said.
“We have worked closely with the sector to design and implement our comprehensive fuel security package.
“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 (petrol, diesel, and jet fuel) from the major domestic refineries who continue operations in Australia.
The production payment reflects the fuel security benefits refineries provide to the Australian market.
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 and long-term self-help measures to further inform the development of the long-term package.
Taylor added the Government’s plan will help protect workers in the fuel sector and in fuel-dependent industries including transport, manufacturing and agriculture.