Australia proposes to pay refiners to stay open

Australia on Monday proposed to offer payments to keep the country’s four remaining refineries open and said it would invest in building fuel storage as part of a long term fuel security plan unveiled on Monday.

The country’s refiners have been battered by the coronavirus-driven collapse in fuel demand, racking up losses which they say threaten the future of their plants as they compete against much bigger refineries around Asia.

“The government is committed to a sovereign on-shore refinery capacity despite the threat to the viability of the industry,” Prime Minister Scott Morrison said on Monday.

Looking to shore up fuel security, the government said it would include A$211 million in its upcoming budget to boost fuel storage, with a focus on diesel, which is crucial for farms, mines, trucks and back-up power.