The Australian government passed the Fuel Security Bill 2021, giving effect to measures to lock in the future of the refining sector, keep petrol prices low and protect jobs, creating certainty for industries like transport and mining.
The bill gives effect to key measures in the government’s comprehensive fuel security package and among others, it seeks to establish a minimum stockholding obligation (MSO) requiring fuel importers and refiners to maintain a level of petrol, diesel and jet fuel. This obligation will commence in July 2022 to safeguard key transport fuel stocks at a baseline level, with a 40% increase in diesel stockholdings from mid-2024.
[smlsubform prepend=”GET THE SAFETY4SEA IN YOUR INBOX!” showname=false emailtxt=”” emailholder=”Enter your email address” showsubmit=true submittxt=”Submit” jsthanks=false thankyou=”Thank you for subscribing to our mailing list”]
In addition, the bill aims to create a fuel security services payment (FSSP) to support refiners during loss-making periods and enable them to continue refining until 30 June 2027. Payments to refineries will begin for production of key transport fuels from 1 July 2021.
Supporting our refineries will ensure we have the sovereign capability needed to prepare for any event, protect families and businesses from higher prices at the bowser, and keep Australia moving as we secure our recovery from COVID-19,
…explained Minister for Energy and Emissions Reduction. Angus Taylor.
Supporting the refineries will also protect 1250 jobs, including workers at the Ampol refinery in Lytton (Queensland) and the Viva Energy refinery in Geelong (Victoria). The support will also create 1750 construction jobs.
The government is also supporting major refinery infrastructure upgrades. This will help refiners accelerate the production of better quality fuels by 2024.
In 2018, policy and industry changes in the country caused fuel supplies to fall to just a quarter of the International Energy Agency’s fuel stockholding obligation, raising concerns about the country’s fuel security.