The federal government’s fuel safety package in last week’s budget will protect fuel supplies, preserve existing jobs and create future construction jobs, says Prime Minister Scott Morrison.

Building on a $ 211 million commitment in last October’s budget, the final installment will include up to $ 302 million for major refining infrastructure modernizations.

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Safeguarding fuel safety in Australia will benefit all Australians, according to Morrison.

“This is a key role in our plan to ensure Australia’s recovery from the pandemic and prepare for future crises,” he said in a statement.

He said the funding is aimed at maintaining self-sufficient refining capacity in Australia by supporting the operations of the Ampol refinery in Lytton, Queensland and the Viva refinery in Geelong.

Prime Minister Scott Morrison says securing fuel safety will bring benefits to all Australians. Credit: AAP

The package will protect the jobs of 1,250 direct employees in the two refineries and create a further 1,750 jobs in construction.

“Previous investments in Australia’s ability to produce better quality fuels, including ultra-low sulfur levels, will also improve air quality and provide an estimated $ 1 billion in lower healthcare costs,” said Morrison.

“Important industries such as agriculture, transport and mining as well as mother and father drivers will have more security and can look forward to savings in vehicle maintenance and a greater selection of new vehicle models.”

Energy and Emissions Reduction Minister Angus Taylor said Australia’s economy depends on fuel.

“Fuel keeps us and the economy moving. That’s why we support our refineries, ”said Taylor.

The 2021/22 budget initiatives include:

– A fuel security service (FSSP *) variable payment to the refineries, funded by the government, that recognizes the fuel security benefits that refineries provide to all Australians

– Up to $ 302 million to support major refinery infrastructure upgrades to help refineries move to better quality fuels production 2027-2024

– $ 50.7 million to implement and monitor the FSSP and Minimum Inventory Requirement (MSO) to ensure industry adheres to the new fuel safety framework.

* The worst-case FSSP variable has been estimated at $ 2.05 billion by 2030. It assumes that under COVID19-like economic conditions, both refineries will receive the highest tax rate over the entire nine years, which is unlikely given the economic recovery.