Australia's federal government will delay the implementation date for reducing sulphur content in gasoline products to December 2025, it has announced, after previously planning to enforce the mandate on 15 December 2024.
The delay will align the rule with regulations to reduce the amount of aromatic hydrocarbons in 95 Ron gasoline and laws to mandate compliance with Euro 6d noxious emissions standards for new passenger cars and light commercial vehicles sold from the end of 2025.
The government said the changes bring Australia into line with 80pc of the global car market, including key trade partners.
Australia's previous government promised A$302mn ($205mn) for refinery upgrades in 2021, to bring Australia's gasoline sulphur fuel standards into line with much of the developed world, of 10 parts per million (ppm) of sulphur (0.001pc) from the current 150ppm.
Funding of A$125mn was later announced for each of Australia's two remaining refineries, the 109,000 b/d Ampol-operated Lytton and the 120,000 b/d Geelong refinery owned by Viva Energy.
Viva revealed in August it had requested a waiver to cover the period after late 2024 when the new fuel standard is introduced.
The Environmental Protection Authority of Victoria state approved a development licence for the upgrades to the Geelong refinery on 28 November.
Ampol said the firm had not yet reached a deal with the government over access to a grant for upgrades to Lytton, after previously targeting a final investment decision (FID) in July-December this year.
"Ampol is still working with the Federal Government on the availability of grant contributions towards upgrading the refinery to meet the aromatics standard," an Ampol spokesman said on 22 December. "We expect to continue discussions with the federal government in the new year and a FID regarding a refinery upgrade project would not be made until conclusion of those discussions."
Ampol confirmed the alignment of the aromatics standard with the low sulphur gasoline standard had been reached by the government following submissions from industry.
Australia's gasoline imports averaged 178,000 b/d for the first 10 months of this year.
