The Morrison Government’s new measures to lock in the future of the refining sector, keep petrol prices low and protect jobs have passed the Australian Parliament.
The Fuel Security Bill 2021 gives effect to key measures in the Government’s comprehensive fuel security package included in the 2021-22 Budget.
The reforms will:
- establish a minimum stockholding obligation (MSO) requiring fuel importers and refiners to maintain a level of petrol, diesel and jet fuel; and
- create a fuel security services payment (FSSP) to support refiners during loss-making periods and enable them to continue refining until 30 June 2027.
These reforms deliver on the Government’s commitment to maintain a sovereign refining capability in Australia.
Payments to refineries will begin for production of key transport fuels from 1 July 2021.
The MSO will commence in July 2022 to safeguard key transport fuel stocks at a baseline level, with a 40 per cent increase in diesel stockholdings from mid-2024.
Supporting our local refineries will protect the jobs of 1,250 workers across the Ampol refinery in Lytton (Queensland) and the Viva Energy refinery in Geelong (Victoria) and create another 1,750 construction jobs.
It will also ensure we have the sovereign capability to respond to a major fuel disruption, protect our fuel dependant industries, families and businesses from higher prices at the bowser, and keep Australia moving as we secure our recovery from COVID-19.
The Government is also providing support for major refinery infrastructure upgrades to help refiners bring forward the production of better-quality fuels from 2027 to 2024.
Enhancing Australia’s fuel security is a key plank in our plan to secure our recovery from the COVID-19 pandemic and to prepare against any future crises.