The Australian government has decided to invest AUD211m (US$154m) to increase domestic fuel storage capacities by building an additional 780 megalitres of onshore diesel storage. It will also introduce a minimum stockholding obligation of 24 days for petrol and jet fuel stocks (28 days for diesel) and will subsidise local refineries to keep them open, in order to secure its long-term fuel supply as the coronavirus-driven demand fall threatens to close refining capacities. In addition, the authorities will introduce a production payment system to protect consumers against fuel price increase.
Earlier in September 2020, Australian oil company Viva Energy (Vitol) announced that it could close its 128,000 bbl/d Geelong refinery in Victoria (Australia), due to the fall in petroleum products demand. The refinery is currently running at a reduced output and is not expected to return to full production before November 2020 at the earliest. There are four refiners in Australia: BP (Kwinana refinery;146 kb/d), Vitol (Geelong refinery; 128 kb/d), Caltex (Lytton refinery; 109 kb/d), and ExxonMobil (Altona refinery; 90 kb/d).
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