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2 ASX energy shares to benefit from the budget

The share prices of both Viva Energy Group Ltd (ASX: VEA) and Ampol Ltd (ASX: ALD) have been quite erratic over the last 12 months. Can the government's new measures push up their share price?
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Raymond Jang

Raymond is a Rask Investment Analyst. He has extensive experience in analysing and investigating businesses from his roles at a national accounting firm and at ASIC. Raymond is a Chartered Accountant and holds a Bachelor of Commerce from the University of NSW. His curiosity about the world and drive to find high-quality businesses is what gets him out of bed every morning. Outside of writing and investing, you will find Raymond playing football in a cage (trust us, it's more fun than it sounds) or at a park. If you enjoyed his analysis, check out our Rask services. You can connect with Raymond on Twitter or LinkedIn.
More analysis

The share prices of both Viva Energy Group Ltd (ASX: VEA) and Ampol Ltd (ASX: ALD) have been quite erratic over the last 12 months.

Viva Energy is one of Australia’s leading energy companies and operates the Geelong refinery in Victoria.

Ampol is the nation’s leader in transport fuels, supplying Australia’s largest branded petrol and convenience network.

VEA share price

Source: Rask Media VEA 1-year share price chart

ALD share price

Source: Rask Media ALD 1-year share price chart

Fuel security package

The federal government announced it will offer a helping hand to protect hundreds of jobs at both the Ampol refinery in Lytton and the Viva Energy refinery in Geelong.

The two refineries will be offered up to 1.8 cents per litre of fuel they produce until 2030.

It’s a $2 billion package with around $300 million being allocated to refinery infrastructure upgrades to enable low sulphur fuel production.

These measures were brought in place on the back of concerns about Australia’s fuel security due to refinery closures by BP plc (NYSE: BP) and ExxonMobil (NYSE: XOM).

What now for Viva Energy and Ampol?

The recent closures of oil refineries is a strong indicator of an industry in decline as energy companies embark upon renewable sources of energy instead.

As part of the Rask Investment Philosophy, I prefer to focus on businesses that operate in structurally growing industries.

Whilst it’s encouraging to see the government providing assistance, it seems like it’s slowing down the inevitable long term fate for oil refineries.

If you are on the hunt for ASX growth shares, I’d recommend signing up for a free Rask account to gain access to our stock reports.

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Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.

At the time of publishing, the author of this article does not have a financial or commercial interest in any of the companies mentioned.

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