Ampol Limited (ASX:ALD), an Australian petroleum company that refines, imports, and distributes fuels and lubricants, has welcomed amendments to the Fuel Security Services Payment (FSSP) following a Phase 1 review. The changes include an increase in the collar from 6.4 to 10.0 Australian cents per litre (Acpl) and a favourable adjustment to the Government Margin Marker calculation for its Lytton refinery. The cap payment remains unchanged at 1.8 Acpl. Ampol anticipates further engagement with the Federal Government regarding long-term fuel supply resilience during Phase 2 review expected to be completed in calendar 2026.
In addition to the FSSP update, Ampol has deferred its scheduled Turnaround and Inspection (T&I) maintenance program at the Lytton refinery from early June to the start of August 2026. This deferral will enable increased domestic production of approximately 300 million litres of petrol, diesel, and jet fuel during that period. The company confirmed that it was well-prepared at the commencement of the Middle East conflict in terms of crude and product inventory.
According to CEO Matt Halliday, the adjustments to the FSSP effectively increase the level at which payments under the scheme will commence. He stated that the amendments recognise significant cost increases and capital investment made since the scheme began in 2021, and the importance of maintaining a viable domestic oil refining capability. Halliday also noted that the amendment of the collar and the adjustment to the Government’s refiner margin calculation will help reduce volatility in Lytton earnings over time.
Ampol has also been working to secure additional sources of finished product supply from Asia, following some industry disruption. The company noted that it was well-prepared at the commencement of the Middle East conflict, with confirmed orders and crude and product inventory. The temporary amendment to the gasoline fuel standard will enable 80-100 million litres per month of additional petrol produced at the Lytton refinery to be sold domestically.
