- Prime Minister Anthony Albanese announced a study for a new refinery in Karratha in Western Australia, backed by A$4 million ($2.8 million) of government funds.
- The project, which would be built and operated by Perdaman Group, would be the first oil-processing plant to start in the nation since 1965 if it goes ahead.
- Australia’s government has launched a feasibility study for an oil refinery that, if approved, would be the first such facility to be built in the country in six decades.
- According to Prime Minister Albanese, a new refinery would strengthen Australia’s self-sufficiency in fuel supply, protecting it from potential future oil shocks.
- The fuel supply situation in the country became worse in March with the Hormuz crisis and after a fire broke out at one of the only two refineries in the country.
- At the end of March, the Australian federal government halved the fuel excise on gasoline and diesel for three months in a bid to alleviate financial stress for consumers due to the spiking fuel prices.
- Then the federal government said in April it had secured approximately 100 million liters of additional diesel, with two shipments coming from Brunei and South Korea.
Australia's government has initiated a feasibility study for a new oil refinery in Karratha, Western Australia, marking the first such facility since 1965.12
Prime Minister Anthony Albanese announced the A$4 million ($2.8 million) funding for the project, which aims to bolster domestic fuel production and reduce reliance on imports.
"One of the things that building national resilience does is it makes Australia less vulnerable to the impact of events around the world," Albanese stated, emphasizing the need for self-sufficiency in light of recent global oil supply disruptions.4
The urgency for this initiative was underscored by the Hormuz crisis and a fire at one of the country's two existing refineries, which worsened the fuel supply situation.5
In response to rising fuel prices, the federal government halved the fuel excise on gasoline and diesel for three months and secured an additional 100 million liters of diesel from Brunei and South Korea.67
If approved, the refinery, to be operated by Perdaman Group, will significantly enhance Australia's energy security and resilience against future oil shocks.
“The feasibility study, announced by Prime Minister Anthony Albanese, aims to bolster Australia's fuel self-sufficiency amid rising global tensions. Albanese emphasized that building national resilience will make Australia less vulnerable to international events affecting fuel supply.”
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