Australia Plans First New Oil Refinery in 60 Years

Is this a bold step toward energy security or a costly half-measure that misses the point?

JUL 28·Updated JUL 29

Australia Plans First New Oil Refinery in 60 Years

Story

Above: Mobil fuel distribution centre in the Melbourne suburb of Yarraville on March 23. Image credit: William West/AFP/Getty Images

The Facts

Australia's Prime Minister Anthony Albanese announced a joint AU$4 million ($2.7 million) feasibility study with the Western Australia state government to explore building the country's first new large-scale oil refinery in more than 60 years, to be constructed by Perth-based industrial company Perdaman.
The Guardian
Daily Sabah
The proposed refinery would be located in Western Australia, with possible sites including Geraldton, Perth, Bunbury and Collie. Federal Resources Minister Madeleine King said "the north does make sense" but noted a proper investigation was needed to determine the final location.
The Jakarta Post
ABC Australia
Australia currently imports about 80% to 90% of its liquid fuel needs, with only two refineries operational — Ampol's Lytton refinery in Brisbane and Viva Energy's facility in Geelong.
Reuters
Tank Storage Magazine
Australia once had eight oil refineries in 2000, but closures driven by high operating costs and competition from larger Asian refineries reduced that number to two. BP shut its 146,000-barrels-per-day Kwinana plant in Western Australia in 2021, converting it into a fuel import terminal.
Free Malaysia Today
Australian Financial Review
An Australian Treasury briefing provided to Treasurer Jim Chalmers warned that the global oil market had become more vulnerable "with weaker buffers against supply shocks," with global oil inventory levels falling as the Middle East conflict intensified.
Reuters
The Guardian
The feasibility study is part of a broader AU$15 billion federal fuel security package, which also includes AU$7.5 billion to secure extra fuel and fertilizer shipments and AU$3.2 billion to build an additional 1 billion-liter reserve of diesel and jet fuel.
Michael West Media
The Guardian

Sources Split

LEFT

CENTER

RIGHT

ESTAB
CRIT

CENTER

PRO
ESTAB

The Spin

Pro-government narrative

This plan is a smart, necessary move. The pre-feasibility study signals serious commitment to rebuilding domestic refining capacity that's been gutted over decades. Thousands of jobs, stronger diesel supply for regional communities and a real sovereign energy buffer — this is exactly the kind of forward-thinking industrial policy Australia needs.

Australian Manufacturing

Government-critical narrative

The refinery announcement looks bold, but the fine print reveals real limits — the facility would still depend on imported crude oil, meaning true energy independence remains out of reach. Meanwhile, the fuel excise cut is ending, hitting families right in the wallet. Backing a refinery that doesn't solve the supply chain problem while letting cost-of-living pressures mount is a half-measure.