The Albanese Government is further strengthening Australia's fuel security, paving the way for our refineries to embrace new technologies while delivering the petrol and diesel we need to keep Australians moving.
In 2025, Viva in Geelong and Ampol in Brisbane produced 12 billion litres of petrol, diesel and jet fuel, or about 20 per cent of our annual needs. These two refineries are critical for our energy security.
Following more than six months of detailed review, the Government will amend the Fuel Security Services Payment. The payment cap will remain at 1.8 cents per litre, but the trigger mechanism will be adjusted so it better reflects the market conditions they operate in.
This payment is an important insurance policy that provides payments to refiners when prices don't cover the costs of production. However, it's clear that the design was flawed - with refiners only accessing payments twice since 2021.
In return, Ampol and Viva are progressing plans to keep operating into the next decade. Ampol has also advised it now has the confidence to maintain full production and defer planned maintenance work to increase onshore production while international supply chains are under pressure.
This will make it easier for refineries to access existing funds under the Fuel Security Services Payment - there are no additional costs to the Commonwealth.
The Department of Climate Change, Energy, the Environment and Water has done a rigorous open book review, with audited data and independent third-party analysis by Deloitte benchmarking cost claims against market conditions.
We are confident this adjusted approach will ensure value for taxpayers and keep providing the fuel Australia needs.
This builds on a range of work this Government has delivered to fix the fuel insecurity Angus Taylor left behind.
Since coming to office we have shored up domestic fuel security and better protected consumers and our economy from supply disruptions, that includes:
- Delivering a domestic fuel reserve through a Minimum Stockholding Obligation
- Maintaining sovereign refining capability through the Fuel Security Services Payment
- Investing $1.1 billion in Low Carbon Liquid Fuels, so our refiners can modernise and make more fuels here
- Bringing diesel storage across the country to over 3.7 billion litres with over 90 diesel terminals
- Improving Australia's fuel quality and supporting refiners in this transition by delivering the Refinery Upgrades Program
- Working with industry to strengthen resilience of critical inputs to our fuel market through secure supply of diesel exhaust fluid and a national stockpile of technical grade urea
Because of this work Australia has entered this period of global uncertainty better prepared than ever before.
While Angus Taylor and the former Government let four refineries close on their watch, the Albanese Government has been focused on securing their lasting viability and investing in their future.
Australia in 2026 is significantly more energy secure than the situation we found ourselves in when we formed Government in 2022.
Over half our national grid is now powered by renewables, we have an onshore domestic fuel reserve and an incoming domestic gas reservation, while our international relationships are stronger - ensuring we can help support regional energy security.
Today's announcement builds on these plans and ensures our nation's resilience and strength under the Albanese Government is guaranteed.
