Ampol (ASX:ALD) has welcomed the Australian Federal Government's Phase 1 review of the Fuel Security Services Payment, announcing a structural shift designed to bolster the nation's domestic refining resilience.
The centrepiece of the update is a net movement of 4.22 Australian cents per litre in support levels.
This includes increasing the "collar" from 6.4 Acpl to 10 Acpl and implementing a favourable amendment to the Government Margin Marker calculation for the Lytton refinery.
Under the revised framework, Australian refineries will receive variable support payments when margins sit between 8.2 Acpl and 10.0 Acpl.
If margins dip to 8.2 Acpl or below, a capped payment of up to 1.8 Acpl will be triggered.
Ampol CEO Matt Halliday noted that the adjustments effectively raise the threshold for government intervention, acknowledging the rising capital costs and global market volatility faced by the sector since 2021.
To further secure local supply, Ampol has deferred its scheduled turnaround and inspection maintenance program at Lytton.
Originally slated for June, the works will now commence in August.
The strategic delay ensures an additional 300 million litres of petrol, diesel, and jet fuel remain available to the domestic market during the transition.
As the industry looks toward a Phase 2 review later this year, the focus remains on long-term fuel security and the vital role of domestic refining in a complex geopolitical landscape.
At the time of reporting, Ampol's share price was $33.03.