SYDNEY, Dec 14 (Reuters) - Australia will bring forward by
six months a subsidy payment designed to support the country's
four refineries to help tide over the financial hit from the
coronavirus pandemic, Energy Minister Angus Taylor said on
Monday.
Australia's local refineries are reeling from a slump in
demand triggered by international travel curbs due to COVID-19,
racking up losses which they say threaten the future of their
plants.
"The COVID-19 pandemic continues to place immense pressure
on our refineries and the many Australians employed in the fuel
sector," Taylor said.
"The production payments will help the industry withstand
the economic shock of this crisis, protecting local jobs and
industry, bolstering our fuel security and shielding motorists
from higher prices."
Taylor said the support, announced as part of a A$2.3
billion ($1.74 billion) comprehensive fuel security package in
September, will now begin on Jan. 1, 2021 versus July 1.
The support will be provided through a minimum one cent
payment for each litre of petrol, diesel and jet fuel from the
domestic refineries that continue operations in Australia.
Refiners must agree to continue to operate for the duration
of the program to receive the payment, which will be funded by
the Australian government for the first six months in a package
worth A$83.5 million ($63.1 million).
With demand expected to recover slowly and overcapacity
squeezing margins, the four refiners - BP Plc, Exxon
Mobil Corp, Viva Energy Group and Ampol Ltd
- have been urging the government to provide more
support.
($1 = 1.3240 Australian dollars)
(Reporting by Renju Jose; Editing by Daniel Wallis)