Albanese to allot $4M for Western Australia oil refinery study

• Prime Minister Anthony Albanese will dedicate $4 million to study a new Western Australia oil refinery project.
• The initiative aims to address severe liquid fuel vulnerabilities caused by ongoing Middle East conflict.
• Industrial manufacturer Perdaman would build the facility if the feasibility study proves successful.

Prime Minister Anthony Albanese is set to allocate $4 million towards a feasibility study for a new oil refinery in Western Australia to strengthen national fuel security.

The move comes as Middle East supply disruptions expose Australia's heavy dependence on imported refined fuel, which currently relies on just two domestic refineries compared to eight operating two decades ago.

"My government's working to advance Australia's interests – not just in this crisis but going forward as well to ensure we can meet future challenges," said Prime Minister Anthony Albanese.

The project would be built by Perdaman, which stated that Australia requires its own sovereign refining capability to help secure the country's fuel future.

The government aims to mitigate severe supply chain vulnerabilities as international oil prices have risen 28% following the collapse of a regional shipping agreement.

Australia currently imports roughly 55% of its petrol and 15% of its diesel directly from Singapore to meet domestic demand.