The Federal Government has secured the ongoing operations of the Ampol Lytton Refinery and the Viva Energy Geelong Refinery through the Fuel Security Services Payment (FSSP).
The Government say that the FSSP is responsible for securing the ongoing operations of the Ampol Lytton Refinery in Queensland until at least 30 June 2027, and the Viva Energy Geelong Refinery in Victoria until 30 June 2028. Both refineries have an option to extend to mid-2030.
The FSSP is structured to provide a high level of support when refining margins are low, and no support when refining margins are high, reducing volatility for refiners and ensuring Government support is targeted to the times it is most needed.
Angus Taylor, Minister for Industry, Energy and Emissions Reduction, said the FSSP delivers value to the taxpayer while enhancing Australia’s domestic fuel security.
“Our comprehensive fuel security package will ensure we are prepared for any emergency, see an increase in our onshore diesel stockholdings and lock in jobs of our fuel dependent industries, such as our truckies, farmers, miners and tradies.
“The results demonstrate the Fuel Security Services Payment is working as intended, with refiners only receiving support from the Government when refinery market conditions are poor.”
For quarter one of 2021-22, the Department of Industry, Science, Energy and Resources determined that Viva Energy will receive $12.45 million, while Ampol will not receive any payment given their recent strong results.
This news makes me proud to be an Australian. We need to find ways to get this out to the populous.