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The Refinery Upgrades Program has been designed to reinforce the local production of fuel, with the federal government providing $250 million to two domestic refiners.
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Under the federal government’s Refinery Upgrades Program, Brisbane’s Ampol refinery and Geelong’s Viva Energy refinery are expected to each receive a $125 million grant to enable the commencement of major upgrades to their facilities.
The investments, which will also be matched by the individual refineries, will result in $500 million invested into the facilities.
Prime Minister Scott Morrison explained that Australian refineries were an essential capability to enhance the nation’s fuel resilience amid global instability.
“COVID-19, the Russian war in Ukraine and trade restrictions have disrupted global supply chains and Australia is not immune,” Prime Minister Morrison said.
“Oil refineries literally fuel a stronger economy, and these investments will help keep our truckies, miners, defence force and farmers moving across Australia.
“Our plan for a stronger future locks in Australia’s refining capabilities and will ensure upgrades are made to improve the quality of our fuel.
“These investments also protect the 1,250 existing refinery jobs and support the creation of around 500 more construction jobs across Lytton in Brisbane and Geelong.
“Cutting the fuel tax and this fuel security package put Australian motorists and businesses first. Our support for local refineries ensures we have the local capabilities to produce fuel even in the most challenging of times to keep our economy running.”
The investment forms part of the comprehensive fuel security package that was earmarked in the federal government’s 2021-22 package.
It is further hoped that the program will expedite new fuel standards.
According to the Minister for Industry, Energy and Emissions Reduction Angus Taylor, new fuel standards would have health benefits for Australian families.
“Bringing forward the roll-out of ultra-low sulfur fuel from 2027 to 2024 will deliver significant health benefits for Australians through improved air quality. This is estimated to result in $1.02 billion in avoided health costs,” Minister Taylor said.
“These grants are the next step in the Morrison government delivering on our commitment to support Australian domestic refiners to keep producing local fuel for Australian motorists.
“As well as enabling the production of better-quality fuels, our landmark refinery production payments continue to provide taxpayers with lower than budgeted payments, with both refineries not needing any support in the second quarter.
“We will continue to ensure Australian families and local industry can access the quality fuel they need, when they need it through our fuel security package.”
[Related: Federal budget, good news for fuel security]
