NatRoad welcomes the news that Australia’s three remaining oil refineries will receive the support needed to keep operating under an $83.5m, six-month rescue package to safeguard Australia’s fuel security.
Australian refineries will receive at least 1 cent a litre for petrol, diesel and jet fuel they produce from 1 January, 2021.
These production payments are aimed at keeping Australian domestic refineries operating and bolstering Australia’s fuel security. As well as creating new jobs it will protect workers in fuel dependent industries such as road freight.
This announcement builds on the Government’s previously announced actions to secure Australia’s long-term fuel supply and bolster local industry.
The 2020-21 Budget announcement includes three elements:
• Investing $200 million in a competitive grants program to build an additional 780ML of onshore diesel storage;
• Creating a minimum stockholding obligation for key transport fuels; and
• Backing the refining sector through a market mechanism to deliver a refinery production payment.
In September Scott Morrison spoke of the importance of fuel security, especially after the impact of the COVID-19 pandemic.
“The events of 2020 have reminded us that we cannot be complacent. We need a sovereign fuel supply to shield us from potential shocks in the future,” the Prime Minister said.
NatRoad will continue to encourage the Australian Government to further build-up our domestic fuel storage and production to ensure we are well equipped to support Australia’s future road transport fuel needs.