Motorists to save and surety for refineries in government’s pre-budget announcement
Regional areas connected to refineries will be prioritised under a $200 million plan aimed at boosting onshore fuel storage to save motorists at the pump and provide surety for the sector. This is how it will work.
Geelong
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REGIONAL areas connected to refineries will be prioritised under a $200 million plan aimed at boosting onshore fuel storage to save motorists at the pump and provide surety for the sector.
As the operator of the Geelong refinery considers a full shutdown from November, the Morrison government will on Monday announce a scheme to begin before May to deliver 780 megalitres of onshore diesel storage.
Prime Minister Scott Morrison said the boost to storage would create up to 950 jobs in construction and maintenance of facilities in addition to 75 ongoing jobs.
“Our positive changes to the fuel market will ensure Australian families and businesses can access the fuel they need, when they need it, for the lowest possible price,” Mr Morrison said.
“The events of 2020 have reminded us that we cannot be complacent. We need a sovereign fuel supply to shield us from potential shocks in the future.”
Information from refineries indicates that most fuel storage projects would take an average of 18 months to three years to complete.
The Geelong refinery, which employs about 700 people, handles 50 per cent of Victoria’s liquid fuel needs, supplies 100 per cent of the marine fuel oil for Victoria’s commercial ships and half the state’s bitumen.
The government say it will also move towards setting minimum levels of onshore fuel stockpiles via legislation in the next six months.
Under the plan the country’s diesel stockpile will be increased by eight days to 28 days of consumption, and jet fuel and petrol stockpiles to about 24 days each.
In July the nation’s diesel stockpile was at 20 days, petrol stockpile at 25 days and jet fuel stockpile at 27 days.
Meanwhile Australian refineries would be paid at least 1.15 cents per litre for fuel produced for national stockpiles, under a scheme the government hopes to trash out with industry.
But to receive the support refineries would need to commit to stay in Australia.
Energy Minister Angus Taylor said Australian refineries are under significant financial pressure and the government was working with the sector to ensure its future.
“Almost all Australians are reliant on fuel and it is the lifeblood of so many sectors in our economy,” Mr Taylor said.
“That’s why it is critical that Australia has control over its fuel security arrangements and the Government is making sure of that.”
Victorian senator Sarah Henderson said the package was a “win” for the Geelong refinery.
“The package recognises the very important role that the Geelong Refinery plays in Australia’s fuel security which, in turn, is so important for our national security.”
Last week Corio MP Richard Marles called for the government’s fuel security package to fast tracked to save the Geelong refinery.
Originally published as Motorists to save and surety for refineries in government’s pre-budget announcement