The Australian Government has secured Australia’s long-term refining capability. Viva Energy’s Geelong Refinery in Victoria has committed to continue operating until 30 June 2028. Ampol’s Lytton Refinery in Queensland will operate until 30 June 2027. The government has also finalised the first quarterly Fuel Security Services Payment (FSSP).
For quarter 1 of the 2021-22 financial year:
- Viva Energy Refining Pty Ltd has been paid $12.45 million.
- Ampol Refineries (Qld) Pty Ltd will not receive any payment.
The FSSP is based on the volume of key transport fuels produced in each quarter until the end of the refiner’s commitment period. It considers:
- external market conditions such as the price of fuel and crude oil and freight costs
- refinery yields
- other operating factors.
The results for quarter 1 show that the FSSP is working as intended, with refiners only receiving support when market conditions are poor.
The government is also providing up to $302 million to support major refinery infrastructure upgrades. This will deliver better quality fuel, improved air quality, health benefits and reduced car maintenance costs.
These actions are part of the government’s fuel security package announced in the 2021-22 Budget. The fuel security package works to:
- maintain domestic refining capability until at least 2027
- bring forward improvements to fuel quality from 2027 to 2024
- ensure Australia has the fuel stocks and refining capability it needs to be prepared in an emergency
- support the economy and workers in fuel-dependent industries such as transport, agriculture, mining, trades and critical services.
