Families and businesses will be protected from higher prices at the Bowser, and hundreds of jobs in Brisbane will be saved under an agreement between the Morrison government to provide a financial security blanket to the last remaining oil refineries in the country.
With only two oil refineries left in the country, including Ampol’s Lytton plant in Brisbane, the new payment is set to keep the struggling sector going so Australia doesn’t have to rely on other countries as a vital resource.
The payment, announced today (Monday) by Prime Minister Scott Morrison in Brisbane, will serve as a safety blanket for the refineries, with the government stepping in at a maximum of 1.8 cents per liter in difficult times – like now. without cash for refineries when business is going well.
Two of Australia’s four oil refineries closed after the demand for jet fuel collapsed and gasoline and diesel consumption fell due to the pandemic.
Up to 550 workers in Queensland would be affected if Ampol’s Lytton facility was closed, excluding the indirectly affected jobs.
In the worst case scenario, with refineries struggling with this « fuel security service payment » by 2030, it could cost taxpayers up to $ 2 billion – although the government expects the amount to be less.
An additional $ 50.7 million was allocated to implement this contract, including ensuring that refineries meet their obligations to maintain a minimum level of essential fuels for transportation.
Mr Morrison said protecting the country’s fuel safety would benefit all Australians. The modeling shows that the prices on the browser would increase by around 1 percent per liter if both of the remaining oil refineries were to close.
« This is a key role in our plan to ensure Australia’s recovery from the pandemic and prepare for future crises, » he said.
« Important industries such as agriculture, transport and mining as well as mother and father drivers will have more security and can look forward to savings in vehicle maintenance and a greater selection of new vehicle models. »
The fuel safety package announced today also includes up to $ 302 million to support major refinery infrastructure upgrades to improve fuel quality sooner – a plan the government hopes will create 1,750 additional construction jobs.
The government plans to put legislation in place in the coming weeks with the aim of enabling payments to refineries by July this year.
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