The federal government has pledged $7.8 million in temporary funding assistance following a downturn for the country’s 11 used oil re-refiners due to Covid-19.
Deputy prime minister Michael McCormack said in a statement that, “50 per cent of Australia’s waste oil refineries [have] shut-down and industry estimates [show] at least 25 per cent of waste oil is at risk of not being collected.”
The largest local recycler, Southern Oil Refining, said it would help retain 32 jobs at their Northern Oil division in Gladstone.
Oil re-processors are currently supported through a levy-benefit system, the Product Stewardship For Oil Scheme, introduced in 2001 and collecting 8.5 cents per litre from sales of new oil. It helps re-process an estimated 300 million litres of used oil annually. Used oil is collected from an estimated 48,000 sites around Australia, such as mechanics and factories.
The extra assistance would run to December 31.
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