Fuel retailer Ampol says it has enough diesel and jet fuel to last through the end of May and gasoline into July as its inventory positioning and domestic refining capability have allowed it to navigate the significant supply chain disruptions triggered by the escalating Middle East conflict.
As the conflict puts pressure on Asian refineries, which supply much of the refined petrol and diesel to the Tasman region, Ampol has moved to shore up local supply. Crude oil for the Lytton refinery in Queensland is secured into July.
The company reported a Lytton Refiner Margin (LRM) of US$25.45 per barrel for the first quarter of 2026. This figure was bolstered by a substantial uplift in global margins during March, following the commencement of hostilities and the subsequent impact on shipping through the critical Strait of Hormuz.
As one of two refiners in Australia and the only integrated downstream supplier, with an independent trading and shipping capability, Ampol has been focused on securing domestic supply.
The company has postponed major maintenance on its Lytton Fluidised Catalytic Cracker Unit from June until August.
Furthermore, the company is working with the Australian government to temporarily amend gasoline standards and has agreed to commercial terms with Export Finance Australia to underpin additional fuel security.
Despite the volatile geopolitical landscape, Ampol’s operational metrics remained strong. Total refinery production hit 1,434 million litres, a 10 per cent increase on the previous year, while Australian fuel sales rose 4.7 per cent.
The company’s convenience retail sectors in both Australia and New Zealand also continued to perform well, up 3.5 per cent to 898 million litres, supported by higher shop margins.
While landed crude costs for the Lytton refinery have increased, Ampol noted that its independent trading and shipping capability allowed it to benefit from arbitrage cargoes secured prior to the conflict.
Ampol said that despite the ongoing conflict presenting challenges, the company is entering the second quarter with the broad-based momentum seen in the first quarter.
It has a well-positioned hedge book to help mitigate the volatility and increased physical premiums seen in market.
