The federal and Western Australian governments have launched a joint AU$4 million pre-feasibility study into building a new large-scale oil refinery in Western Australia, aiming to boost national energy security amid ongoing global fuel shocks.
Proposed by industrial group Perdaman, the facility would mark Australia’s first new large-scale petrol refinery built since the 1960s.
Australia currently operates just two oil refineries, in Brisbane and Geelong, following four closures under the previous Coalition government.
The joint study forms part of the government’s AU$15 billion fuel security package, which includes a AU$7.5 billion Fuel and Fertiliser Security Facility, a AU$3.2 billion government-owned Australian Fuel Security Reserve, and a temporary reduction in the fuel excise.
Prime Minister Anthony Albanese said the initiative aims to protect Australia from external economic pressures.
“The longer war in the Middle East goes on the greater the impact on Australia will be, and my government will continue to do everything we can to shield Australia from the worst effects – and set us up for the future,” Albanese said.
WA Premier Roger Cook added that rebuilding WA’s fuel capacity is central to the state’s economic resilience, protecting vital industries such as mining.
“While many Western Australians remain anxious about our state’s fuel security, we are doing everything it can to address these concerns by working with the Commonwealth to provide steady and experienced leadership and continue delivering our Made in WA plan.”
The proposed refinery would generate thousands of jobs, drive local manufacturing, and shore up diesel supplies for regional Western Australian communities.
However, climate advocates and energy experts have criticised the plan, arguing that a new refinery will not protect consumers from overseas price volatility or supply disruptions tied to global conflict.
Former Regional President of BP Australasia and Climate Councillor Greg Bourne said building a refinery makes no commercial sense, noting that over 95 per cent of the oil refined in Australia originates overseas.
“We can save taxpayers $4 million right now, because we don’t need a feasibility study to know this doesn’t stack up,” Bourne said.
“Building a new refinery would cost billions, take up to a decade to build, and require ongoing subsidies to run it. All this public money for no noticeable reduction in our reliance on imported oil.
“The real fix is needing less petrol and diesel in the first place, and that means electrification.”
Climate Council CEO Amanda McKenzie added that clean energy is the fastest way to solve both energy security and climate concerns, calling the proposal “reckless and out of touch” during a global climate crisis.
