The Australian Government has announced changes to the Fuel Security Services Payment aimed at supporting domestic fuel production and helping refineries adapt to new technologies.
In 2025, the Viva refinery in Geelong and Ampol’s Brisbane facility produced around 12 billion litres of petrol, diesel, and jet fuel, supplying roughly 20 per cent of the nation’s annual demand. These refineries are considered critical for maintaining Australia’s energy security.
Following a review of the payment, the government will maintain the existing cap of 1.8 cents per litre but adjust the trigger mechanism to better reflect current market conditions.
The government said the payment provides financial support to refiners when production costs exceed market prices, although under the previous system payments were accessed only twice since 2021.
Ampol and Viva have indicated plans to continue operating into the next decade, with Ampol reporting it can maintain full production and defer some maintenance to increase onshore output amid international supply pressures. The changes do not require additional funding from the Commonwealth.
The Department of Climate Change, Energy, the Environment and Water conducted a review with audited data and third-party analysis by Deloitte to benchmark refinery cost claims against market conditions.
The government said the adjustments aim to provide value for taxpayers while ensuring the supply of petrol and diesel.
The measures build on ongoing initiatives, including a domestic fuel reserve, investment in low-carbon liquid fuels, diesel storage infrastructure, refinery upgrades, and securing key inputs such as diesel exhaust fluid and technical-grade urea.
Officials noted that Australia’s fuel security has improved since 2022, with over half of the national electricity grid now powered by renewables, and strengthened international energy relationships contributing to regional supply stability.
