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Fuel Security Service Payment to support refinery infrastructure

Fuel Security Service Payment

A variable Fuel Security Service Payment (FSSP) has been announced by the federal government in the 2021-22 Budget, to help secure Australia’s refining sector. 

Up to $302 million will be invested to support major refinery infrastructure upgrades. This will help refiners fast tracthe production of better-quality fuels from 2027 to 2024. 

Australian Resources and Energy Group (AMMA), peak employer group for resources and energy, has said this is an appropriate response to a challenging long-term issue. 

“As the country continues its COVID-19 recovery, the government’s fuel security package gives certainty to key industries and employers reliant on fuels for day-to-day operations,” AMMA chief executive Steve Knott AM said. 

“Ensuring Australia has a strong local refining sector and capacity for sovereign fuel production is a matter of economic and national security. The loss of national refinery capabilities would have clear defence implications. 

“These measures are vital to building sovereign capacity and will allay concerns about Australia’s fuel security during uncertain global economic times. Significantly more work will be required to ensure a viable and healthy Australian refining sector in the long term.” 

The country’s refining capacity has been in decline for over a decade and the COVID-19 pandemic has further accelerated the need for financial support for the two remaining refineries. 

“Without this support, Australia would be at the mercy of imported fuels,” Knott said. 

“The government’s initiatives in this area will protect families and businesses from higher fuel prices. Following stronger than expected national figures, the result is further good news for employment with 1,250 direct jobs across the Lytton and Geelong refineries.” 

The Fuel Security Service Payment will also assist environmentally in producing better quality, cleaner fuels, improving air quality and delivering associated health benefits. 

Additionally, the federal government is committed to accelerate the industry-wide review of the petrol and diesel standard to 2021 and considering the future of fuel technologies and other development opportunities. 

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