Australia's major refineries to receive 'production payment' to prevent job losses
A government payment made to Australia's three remaining refineries is being touted as a long-term solution to boosting the nation's fuel security.
At a cost of $83.5 million, the government will pay Australia's major refineries a minimum of one cent for each litre of transport fuel (such as petrol, diesel or jet fuel) that is produced.
The payment has been designed to reduce pressure on local refineries, secure jobs and provide more fuel security if an issue in the global pipeline appears.
READ MORE: Calls for petrol price hike to protect Australia's fuel security
The Geelong Refinery in 2008 when it was known as the "Shell Refinery". It was at risk of closing down due to lower fuel use during the pandemic. Craig Sillitoe
Angus Taylor, Minister for Energy and Emissions Reduction, said the new "production payment" will stop prices rising too high at your local petrol station.
"The COVID-19 pandemic continues to place immense pressure on our refineries and the many Australians employed in the fuel sector," he said.
"We have worked closely with the sector to design and implement our comprehensive fuel security package.
READ MORE: Federal Government announces $211 million package to secure Australian fuel supplies
The move should shield motorists from devastating price hikes at the bowser. AAP
"The production payments will help the industry withstand the economic shock of this crisis, protecting local jobs and industry, bolstering our fuel security and shielding motorists from higher prices."
Refineries can begin receiving these payments from as early as January 1, 2021.
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