Breaking News

No government controls for petrol refiners enjoying billions in subsidies

0 0

Handouts to Ampol and Vitol to maintain refining petrol in Australia have not one of the fundamental protections you’d count on for taxpayers.

Scott Morrison and Angus Taylor on the Ampol Lytton refinery in Brisbane on Monday (Picture: AAP/Darren England)

Buyers have been fast to select the winners from the Morrison government’s transfer to subsidise the persevering with operations of two oil refineries: Ampol’s Lytton operation in Brisbane and Viva Vitality’s Geelong refinery close to Melbourne.

The shares in Ampol and Viva had risen greater than 6% by noon Monday, rather more than the broader market’s half a per cent rise, reflecting enthusiasm for an assist bundle that would value greater than $2 billion over the course of the 2020s. The 2 corporations be a part of the lengthy listing of Australian companies subsidised by governments — airways, farmers, steelmakers, aluminium smelters, defence producers — to not point out the taxpayer-backed deposit insurance coverage scheme for banks.

The handouts to refiners has been deemed important for vitality and nationwide safety in order that some quantity of nationwide oil demand (about 1.1 million barrels a day) be processed right here. The 2 refineries course of about 225,000 barrels a day so it is a small quantity of day by day demand in the intervening time.

How can the government guarantee taxpayers, not shareholders, will profit? Learn on.

Already a subscriber? .
Or, register your electronic mail deal with for a FREE 21-day trial.

Happy
Happy
0 %
Sad
Sad
0 %
Excited
Excited
0 %
Sleepy
Sleepy
0 %
Angry
Angry
0 %
Surprise
Surprise
0 %

Average Rating

5 Star
0%
4 Star
0%
3 Star
0%
2 Star
0%
1 Star
0%

Leave a Reply

Your email address will not be published. Required fields are marked *