The Australian parliament has approved the AUD.2.3bn (US$1.7bn) Fuel Security Bill 2021, which creates a subsidy for Viva's Energy's 128 kb/d Geelong refinery and for Ampol's 109 kb/d Lytton refinery to continue activities until 30 June 2027, with an option to extend to 2030. Under the plan, the government agreed to pay AUD125m (US$95m) each to Viva Energy and Ampol to upgrade their refineries to produce ultra-low sulphur petrol by the end of 2024. Payments will start from 1 July 2021. The maximum rate of the subsidy will be AUD1.8c/l (US$1.c/l) when refinery margins drop to AUD7.3/bbl (US$5.5/bbl), with no payments if margins reach AUD10.2/bbl (US$7.7/bbl). In addition, the bill forces refiners to hold minimum stocks of 24 days of petrol and jet demand and 20 days of diesel demand from July 2022, with a 40% increase in diesel holdings required from July 2024.
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