Potential for first Australian oil refinery in 60 years as treasurer braces for inflation from Middle East war
Summary
Australia may build its first new oil refinery in 60 years in Western Australia to reduce reliance on imported fuel. The federal and state governments will spend $4 million on a study to see if this refinery can be built, responding to higher oil prices caused by the ongoing Middle East conflict.Key Facts
- Australia currently imports about 90% of its liquid fuels due to refinery closures over the last 25 years.
- The Middle East war has caused oil prices to rise, increasing inflation risks worldwide and in Australia.
- The federal government and Western Australia will jointly fund a $4 million study to explore building a new refinery.
- Only two large oil refineries now operate in Australia: one in Brisbane and one in Geelong.
- Building a new refinery would cost billions and likely need ongoing government support to compete.
- The proposed refinery project would be led by Perdaman, a multinational company that may get government loans.
- The government has a $10.7 billion fuel security plan, including funding for fuel reserves and studies to increase refining capacity.
- Some environmental groups oppose expanding oil refineries, wanting a shift away from fossil fuels instead.
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