The Australian Government has announced immediate financial support to help local oil refineries tackle the economic shock of the pandemic.

The scheme aims to bring forward production payments to safeguard the fuel security of the region and keep refineries operating.

The support, which will begin on 1st January, will be provided through a minimum one cent payment for each litre of petrol, diesel and jet fuel from the domestic refineries that continue operations in Australia.

The first six months of the production payment will be funded by the Australian Government, with a package worth AUD$83.5 million (£47.3m).

Refiners must agree to continue to run for the duration of the programme in order to be able to receive the payment.

Angus Taylor, Minister for Energy and Emissions Reduction, said: “The Covid-19 pandemic continues to place immense pressure on our refineries and the many Australians employed in the fuel sector.

“The production payments will help the industry withstand the economic shock of this crisis, protecting local jobs and industry, bolstering our fuel security and shielding motorists from higher prices.”