Reviving Australia's Fuel Future: A New Oil Refinery on the Horizon

Australia is considering building its first new oil refinery in over six decades due to Middle East tensions affecting supply. The federal and Western Australia governments will fund a $2.8 million feasibility study. This initiative seeks to enhance national fuel security as Australia heavily depends on imported fuel.

Australia is exploring the option of building a new oil refinery, marking its first in more than 60 years, in response to tightened supplies caused by conflict in the Middle East. The federal government, alongside Western Australia's state government, will allocate A$4 million for a feasibility study to potentially boost the country's energy security.

The nation currently relies on imports for around 80% of its fuel needs. The last domestic refineries were constructed during the 1950s and 1960s, but high costs and increased competition from larger Asian refineries led to closures over the past three decades.

Federal Resources Minister Madeleine King emphasized the critical importance of this project, particularly for Western Australia, which has been without refining capacity since the 2021 closure of BP's facility in Kwinana. Only two refineries, Ampol's Queensland refinery and the Viva Energy plant in Victoria, remain operational compared to eight in 2000.