The Australian Federal Government has renewed its commitment to domestic fuel security by updating the fuel security services payment mechanism for the Geelong Refinery.
The adjustment increases the margin marker cap and collar by 3.6 Australian cents per litre, roughly $5.7 per barrel.
The decision follows a period of rising cash operating costs and sustaining capital expenditure since the scheme was first established in 2021.
Under the revised settings, the FSSP collar— the threshold at which government support commences—has risen from 6.4 Acpl to 10.0 Acpl.
The margin marker cap has been adjusted to 8.2 Acpl.
While these thresholds have shifted to reflect modern economic pressures, the maximum support rate remains fixed at 1.8 Acpl for the production of essential transport fuels, including gasoline, jet fuel, and diesel.
Viva Energy (ASX:VEA) CEO Scott Wyatt welcomed the announcement, noting that the Geelong Refinery currently supplies approximately 50% of Victoria's fuel requirements and 20% of the national total.
The refinery has recently undergone major infrastructure upgrades, including a $500 million investment into low-sulphur petrol production and expanded diesel storage.
By maintaining this critical support through the end of the decade, the government aims to safeguard Australia’s sovereign refining capability and bolster long-term energy resilience against volatile global market shifts.
At the time of reporting, Viva Energy's share price was $2.44.