Why is Prime Minister Anthony Albanese funding a feasibility study for a new oil refinery in Western Australia?

Prime Minister Anthony Albanese allocated $4 million to study a new Western Australia oil refinery project to address severe liquid fuel vulnerabilities exposed by Middle East supply disruptions.

What is the role of Perdaman in the proposed oil refinery project?

Industrial manufacturer Perdaman would build and operate the proposed Western Australia oil refinery if the $4 million feasibility study proves successful.

How many operating oil refineries currently exist in Australia?

Australia currently has just two operational oil refineries, down from eight facilities two decades ago. These remaining assets are operated by Ampol (ASX:ALD) in Queensland and Viva Energy (ASX:VEA) in Victoria.

How dependent is Australia on Singapore for its domestic fuel supply?

Australia imports roughly 55% of its petrol, 23% of its jet fuel, and 15% of its diesel directly from Singapore.

What driven cost increases are affecting global oil markets according to Treasury forecasts?

Treasury reported that international oil prices rose 28% following the collapse of a regional shipping agreement in the Middle East. The department stated that oil prices are expected to remain elevated due to depleted strategic reserves, Red Sea shipping disruptions, and drone strikes on foreign refining infrastructure.

Oil and Gas

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

Written by Jon CuthbertPublished Jul 27, 2026, 10:45 PMLast Updated Jul 28, 2026, 7:40 AM

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.