Australia extends subsidy plan for refiners to 2030

Spanish Market: Oil products
20/03/26

Australia's federal government will extend its Fuel Security Services Payment (FSSP) programme, designed to keep its two remaining refineries open, while lowering the bar for the operators to access state subsidies.

The scheme will keep Ampol's 109,000 b/d Lytton refinery in Brisbane, Queensland and Viva Energy's 120,000 b/d Geelong facility operating into the next decade, energy minister Chris Bowen said on 20 March. The FSSP was supposed to run until 2027, but will now be extended to 30 June 2030.

The FSSP was introduced in 2021 and is designed to pay Ampol and Viva when refining becomes unprofitable. The scheme requires Ampol and Viva to commit to operating until at least 30 June 2027 in return for state subsidies of up to A1.8¢/litre paid when refinery margins drop to a floor A$7.30/bl ($5.17/bl). No payments are made if margins reach A$10.20/bl, as part of the A$2.3bn package of refinery upgrade and fuel storage funding.

The A1.8¢/litre subsidy will not change but the point at which the refiners will now be eligible for support has been increased to A$15.90/bl, Viva and Ampol said, while the margin cap is now A$13/bl, up from A$7.30/bl. These changes come into effect on 20 March.

Ampol has advised the government it now has the confidence to maintain full production and defer planned maintenance work, Bowen said, to increase output as supply chains continue to face strain due to the US-Iran war.

Under the FSSP, two quarterly payments have been made, both to Viva, of A$12.4mn in July-September 2021 and A$25.1mn in the same quarter of 2024.

Viva produced 99,000 b/d and Ampol produced 95,000 b/d in 2025, reporting refiner margins of $9.90/bl and A$10.34/bl respectively.

The refiners rely on imports for most crude oil supply to their plants. Australia's domestic production dropped to 61,000 b/d in 2025 compared with 277,000 b/d in 2011.

Typical sales levels for gasoline and diesel doubled in just 10 days during early March, but Canberra has resisted imposing rationing or sales restrictions and instead established a national fuel supply taskforce to produce a supply outlook.

By Tom Major

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20/03/26

Fuel stations run out of diesel across Australia’s NSW

London, 20 March (Argus) — At least 107 fuel stations across the state of New South Wales (NSW) in Australia have run out of diesel as panic buying has outstripped supply, premier Chris Minns said today. Most of the affected stations are operated by independent fuel retailers who source their fuel from importers. Those importers have started rationing fuel sales to non-contracted buyers so they may honour existing contracts with customers. Australia had 30, 37 and 29-days' worth of stocks for gasoil, gasoline and jet fuel at the normal rate of consumption, the latest weekly snapshot of fuel supplies as of 10 March show. The Australian government allowed the release of up to 762mn litres (4.8mn bl) of gasoline and gasoil from Australia's domestic reserves on 13 March, reducing the Minimum Stockholding Obligation levels for each company to which it applies. Under the state's Energy and Utilities Administration Act, the premier has the power to declare an energy supply emergency if fuel supply is disrupted to a significant degree. This allows the state government to have control the fuel distribution, including directing it to specific regions, forcing suppliers to sell fuel to specific customers and allowing authorities to take control of the businesses that supply fuel. By Tom Woodlock Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

US Jones Act waiver may alter PX trade flows

19/03/26

US Jones Act waiver may alter PX trade flows

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Brazil's MGO demand slumps due to export tax

19/03/26

Brazil's MGO demand slumps due to export tax

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Physical NWE diesel cracks nearing record highs

19/03/26

Physical NWE diesel cracks nearing record highs

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Refineries in Kuwait, Saudi Arabia hit by drones

19/03/26

Refineries in Kuwait, Saudi Arabia hit by drones

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Australia extends subsidy plan for refiners to 2030

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