Australians Rely on Domestic Refining for Fuel Security Amid Global Tensions

Australia's fuel security was put to the test during recent global tensions, when demand for diesel surged by 30 per cent in just a few days. This drastic increase highlighted the importance of domestic refining in maintaining national resilience.

Ampol chief executive Matt Halliday emphasized that Australia cannot rely solely on imported fuel from large Asian refineries, as demonstrated by the Middle East conflict's impact on global supply chains.

The two remaining oil refineries in Australia - Lytton in Brisbane and Geelong in Victoria - together supply about 20 per cent of the nation's petrol, diesel, and jet fuel. While their profitability is threatened by ageing infrastructure, high costs, and competition from Asian giants, Mr Halliday stressed that domestic refining provides critical control over part of the country's fuel supply.

Ampol has invested heavily in its independent trading and shipping teams, sourcing crude oil and refined fuels from a wide range of suppliers. This flexibility allowed the company to adjust shipping schedules and redirect product when markets or shipping routes were disrupted.