However,as the threat of closure hangs over the 65-year-old refinery and its 700 staff due to the severity of the downturn,Viva chief executive Scott Wyatt said the"speed of execution"of those support measures would be a critical factor.
"The current situation is extremely challenging,"Mr Wyatt toldThe Age andThe Sydney Morning Herald."The sooner we can get back to full production the sooner we can access the sort of support that's contemplated in the package that was announced today is critical."
Australia's four remaining refineries have been under enormous strain since travel restrictions and stay-at-home orders to curb the spread of the coronavirus pandemic wiped out demand for petrol,diesel and aviation fuel. Viva's Geelong refinery and Ampol's Brisbane plant have sunk to half-year losses of more than $50 million each.
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In the past decade,three Australian oil refineries – which process crude oil into refined products such as petrol,diesel and jet fuel – have closed down as the domestic sector struggles to compete against the mega-refineries of south-east Asia with their vastly larger scale and lower operating costs.
Following months of industry consultations,the Morrison government on Monday announced a series of new measures to buffer against potential supply shocks caused by global events such as wars or pandemics,and to help keep refineries open"wherever commercially possible".
"The events of 2020 have reminded us that we cannot be complacent,"Prime Minister Scott Morrison said."We need a sovereign fuel supply to shield us from potential shocks in the future."