Highlights

  • Federal Government updates FSSP, ensuring support for domestic refineries through 2030
  • Viva Energy invested ~A$500M in Geelong Refinery upgrades and additional fuel storage
  • Margin Marker collar and cap increased to better reflect current operating costs

Viva Energy Group Limited (ASX:VEA) has welcomed the Federal Government’s update to the Fuel Security Services Payment (FSSP), which provides critical financial support to domestic refineries. The changes ensure that Geelong Refinery’s current operating and sustaining capital costs are fully considered, reinforcing the role of domestic refining in Australia’s energy security. Since 2021, Viva Energy has invested approximately A$500 million in key projects, including converting the Geelong Refinery to low-sulphur petrol and expanding diesel storage. These upgrades, alongside the government’s continued support, strengthen the resilience of Australia’s fuel supply while securing regional energy stability.

Federal Support for Domestic Refining

The FSSP, launched in July 2021, is designed to assist Australia’s two remaining refineries when regional margins fall below long-term breakeven levels. Under the updated framework, the Margin Marker collar for Geelong Refinery rises to 10.0 Acpl (A$15.9/bbl), with the cap increased to 8.2 Acpl (A$13.0/bbl). These changes ensure support begins at a level that reflects current operating costs and continues linearly to the maximum payment if margins drop further. The adjustments do not alter the total maximum support, but they provide greater protection against rising costs and maintain incentives for continued domestic refining operations, crucial for energy security.

Viva Energy Investments and Strategic Upgrades

Viva Energy Group Limited has invested around A$500 million in key infrastructure to strengthen its refining and storage capabilities. Projects include converting the Geelong Refinery to produce low-sulphur petrol, completed in 2025, and adding 90 million litres of diesel storage, completed in 2024. The Company has also supported storage facilities in Perth and South Australia to enhance fuel security. These upgrades ensure reliable supply and improve operational resilience. Combined with the updated FSSP, Viva Energy’s investments demonstrate a commitment to maintaining Australia’s domestic refining capacity, meeting approximately 20% of the nation’s fuel needs, and supporting regional energy stability.

FAQs

  1. What is the Fuel Security Services Payment (FSSP)?

It is a government scheme providing financial support to Australia’s remaining refineries when regional margins fall below breakeven costs.

  1. How much has Viva Energy invested in refinery upgrades?

Viva Energy has invested approximately A$500 million in Geelong Refinery upgrades and additional storage facilities.

  1. What changes were made to the FSSP?

The Margin Marker collar increased to 10.0 Acpl (A$15.9/bbl) and the cap to 8.2 Acpl (A$13.0/bbl) to reflect current operating costs.