Morrison on Monday announced that the federal government will spend up to 2 billion Australian dollars (1.5 billion U.S. dollars) over the next 10 years to ensure that Australia's two remaining oil refineries continue to operate.
He said that the scheme would protect thousands of jobs.
"This is a key plank of our plan to secure Australia's recovery from the pandemic, and to prepare against any future crises," Morrison said in a media release.
"Shoring up our fuel security means protecting 1,250 jobs, giving certainty to key industries, and bolstering our national security."
Under the plan the operators of the two refineries, Ampol in Queensland and Viva in Victoria, will receive up to 1.8 cents per litre of fuel produced when their profit margin drops to 7.30 AUD (5.6 U.S. dollars) per barrel winding down to zero cents when it hits 10.20 AUD (7.9 billion U.S. dollars).
"Fuel is what keeps us and the economy moving. That is why we are backing our refineries," said Angus Taylor, minister for Energy and Emissions Reduction.
"Supporting our refineries will ensure we have the sovereign capability needed to prepare for any event, protect families and businesses from higher prices at the bowser, and keep Australia moving as we secure our recovery from COVID-19."
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