Fuel Security (Fuel Security Services Payment) Amendment Guidelines 2026
I, Chris Bowen, Minister for Climate Change and Energy, make the following guidelines.
Dated 16 March 2026
Chris Bowen
Minister for Climate Change and Energy
Contents
1 Name
2 Commencement
3 Authority
4 Schedules
Schedule 1—Amendments
Fuel Security (Fuel Security Services Payment) Guidelines 2021
1 Name
This instrument is the Fuel Security (Fuel Security Services Payment) Amendment Guidelines 2026.
2 Commencement
(1) Each provision of this instrument specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.
Commencement information |
Column 1 | Column 2 | Column 3 |
Provisions | Commencement | Date/Details |
1. The whole of this instrument | The day after this instrument is registered. | |
Note: This table relates only to the provisions of this instrument as originally made. It will not be amended to deal with any later amendments of this instrument.
(2) Any information in column 3 of the table is not part of this instrument. Information may be inserted in this column, or information in it may be edited, in any published version of this instrument.
3 Authority
This instrument is made under subsection 43(4) of the Fuel Security Act 2021.
4 Schedules
Each instrument that is specified in a Schedule to this instrument is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this instrument has effect according to its terms.
Schedule 1—Amendments
Fuel Security (Fuel Security Services Payment) Guidelines 2021
1 Paragraph 5(4)(a)
After “6.4 cpl”, insert “plus any adjustment factor”.
2 Paragraph 5(4)(b)
After “4.6 cpl”, insert “plus any adjustment factor”.
3 Subsection 6(4)
After “margin marker for each committed refinery”, insert “plus any adjustment factor”.
4 Subsection 12(2)
Omit “$1.80”, substitute “$1.48”.
5 Subsection 12(3)
Omit “$3.10”, substitute “$2.11”.
6 Part 4 (heading)
Repeal the heading, substitute:
Part 4—Milestone reporting
7 Section 14 (heading)
Repeal the heading, substitute:
14 Milestone reporting
8 Section 14
Before “The method”, insert “(1)”.
9 Section 14
After “two years”, insert “starting on the day this instrument commences”.
10 At the end of section 14
Add:
(2) The method for determining the rate of fuel security services payments will be subject to a further milestone report after 1 July 2027 to ensure that it is still appropriate for Australian market conditions.
Overview
The Fuel Security (Fuel Security Services Payment) Amendment Guidelines 2026, introduced by Chris Bowen, the Minister for Climate Change and Energy, amend the existing Fuel Security (Fuel Security Services Payment) Guidelines 2021. These amendments aim to address certain operational and financial adjustments necessary for the effective implementation of the Fuel Security Act 2021. Enacted by the Australian Government, the policy objective of these amendments is to ensure that the fuel security services payments remain aligned with current market conditions and operational requirements. The guidelines were necessitated by the need to update payment rates and reporting mechanisms to reflect changes in the economic environment and operational costs. The amendments are scheduled to commence on the day after the instrument is registered, ensuring a timely update to the regulatory framework governing fuel security services payments.
Scope and Application
The Fuel Security (Fuel Security Services Payment) Amendment Guidelines 2026, under the authority of the Fuel Security Act 2021, apply to entities involved in the fuel industry and transactions related to fuel security services in Australia. The guidelines specifically target adjustments to the payment rates for these services, including the incorporation of any adjustment factors and the modification of specific payment thresholds. This amendment does not explicitly exclude any entities or industries but applies broadly within the Commonwealth jurisdiction, impacting fuel security service providers across Australia. The guidelines also mandate milestone reporting to ensure that payment methods remain suitable for prevailing market conditions, with a further review mandated after 1 July 2027. Subordinate instruments may extend or further define the application of these guidelines, although the specific details are not provided in the text.
Key Provisions
The Fuel Security (Fuel Security Services Payment) Amendment Guidelines 2026 (section 1) make specific amendments to the existing Fuel Security (Fuel Security Services Payment) Guidelines 2021. The amendments, outlined in Schedule 1, include adjustments to payment rates and the inclusion of an adjustment factor for committed refinery margin markers (sections 1-3). Additionally, the Guidelines revise the rates for fuel security services payments from $1.80 to $1.48 and from $3.10 to $2.11 (sections 4-5). The headings of Part 4 and Section 14 are also updated to reflect milestone reporting requirements (sections 6-9). Lastly, the Guidelines mandate a further review of the payment rate determination method after 1 July 2027 to ensure its continued appropriateness for the Australian market (section 10).
These Guidelines impose several obligations on the parties involved, primarily focused on the adjustment of fuel security service payments and the requirement for milestone reporting. The parties must now include an adjustment factor in their calculations for committed refinery margin markers (section 3). They must also adhere to the new rates for fuel security services payments, replacing the previous rates with the updated figures ($1.48 and $2.11) (sections 4-5). Additionally, the Guidelines necessitate the completion of milestone reporting every two years, starting from the date the Guidelines come into effect, with a specific review of the payment rate determination method after 1 July 2027 (sections 9-10).
Failure to comply with the provisions of these Guidelines may result in civil or criminal consequences. While the specific penalties are not detailed in the text, non-compliance with statutory guidelines in Australia can lead to enforcement actions by relevant authorities, including fines, legal proceedings, or other administrative penalties. The exact penalties would depend on the nature and severity of the breach, as well as the relevant legislation governing the Fuel Security Act 2021.