Under the arrangement, the Federal Liberal Government will provide 1 cent in support for every litre of fuel produced at the Geelong refinery, for a temporary period of six months.
As the refinery normally produces around 3 billion litres in six months, that amounts to approximately $30 million.
The temporary funding is needed because short term demand for transport fuels cratered as a direct result of Daniel Andrews’ draconian COVID-19 lockdown measures, which saw people virtually trapped in their homes for many months.
This assistance will mean that the refinery will remain open, continuing to operate as a valuable strategic asset and supporting Victoria’s fuel security into the future.
It comes on top of the $76.8 million in support for Victoria’s Portland aluminium smelter, also provided by the Federal Liberal Government this week, with no help from Daniel Andrews and Labor.
That package is estimated to have saved 3,600 jobs.
In total, the Federal Liberal Government has saved 4,300 Victorian jobs at Portland and Geelong this week alone.
Comments attributable to the Shadow Minister for Energy, Ryan Smith:
“Keeping the Geelong oil refinery operational is essential as Victoria comes back to life after Daniel Andrews’ draconian, recession-inducing, COVID-19 lockdown.
“Backing the Geelong oil refinery means the Federal Liberal Government has saved 700 local jobs, in addition to the 3,600 jobs at the Portland aluminium smelter.
“With our state in the middle of a jobs crisis, the Andrews Government must also act for Victorian jobs.”