Mon, Sep 14, 2020 – 11:20 AM
[SYDNEY] Australia on Monday proposed to supply funds to maintain the nation’s 4 remaining refineries open and stated it might spend money on constructing gasoline storage as a part of a long run gasoline safety plan unveiled on Monday.
The nation’s refiners have been battered by the coronavirus-driven collapse in gasoline demand, racking up losses which they are saying threaten the way forward for their vegetation as they compete towards a lot greater refineries round Asia.
“The federal government is dedicated to a sovereign on-shore refinery capability regardless of the risk to the viability of the trade,” Prime Minister Scott Morrison stated on Monday.
Seeking to shore up gasoline safety, the federal government stated it might embody A$211 million (S$209.9) in its upcoming funds to spice up gasoline storage, with a give attention to diesel, which is essential for farms, mines, vans and back-up energy.
“The occasions of 2020 have reminded us that we can’t be complacent. We want a sovereign gasoline provide to defend us from potential shocks sooner or later,” Morrison stated in an announcement.
The federal government stated it might work with the trade to design a “refinery manufacturing fee” as an incentive to maintain the 4 vegetation open. Had been they to shut, shoppers would face a 1 cent per litre rise in gasoline costs.
It was not instantly clear how a lot the federal government proposed to pay refiners to remain open.
BP Plc, proprietor of Australia’s largest refinery, Viva Power Group, and Ampol Ltd all welcomed the proposals however made no dedication to maintain their vegetation open.
“Our refining enterprise continues to face vital instant challenges, and we look ahead to working with each state and federal governments within the weeks forward to deal with the brief and long-term viability of our refinery at Geelong,” Viva Chief Government Scott Wyatt stated on Monday.
BP and Ampol Ltd stated they wanted to see particulars of the proposed measures to know the impression on their companies.
Exxon Mobil Corp, operator of Australia’s smallest and oldest refinery, had no instant remark.