The Australian government, as announced by Energy Minister Chris Bowen, has finalized an agreement to continue subsidizing the nation’s two remaining oil refineries. This deal involves amending the fuel security services payment to assist the refineries when operational costs exceed oil prices. Viva Energy’s Geelong refinery and Ampol’s Brisbane refinery collectively met 20 percent of Australia’s fuel demands in 2025.
Bowen confirmed that the payment cap will stay at 1.8 cents per liter, but adjustments will be made to the trigger mechanism to activate payments at a lower price level. In return, Viva and Ampol are committed to sustaining refinery operations until the 2030s. Ampol has also expressed readiness to maintain full production and postpone maintenance work to boost local production amidst global supply chain challenges.
The announcement comes amidst global oil supply disruptions due to Middle East conflicts. Despite this, Bowen clarified that discussions with Viva and Ampol have been ongoing for six months. While the government currently does not foresee the need for immediate actions to ensure domestic fuel supply, contingency plans are being evaluated if the conflict extends into April and May.
Earlier, on March 13, Australia’s energy minister had disclosed plans for releasing up to 762 million liters of petrol and diesel from national reserves in response to the Middle East crisis.
