Albanese and Cook Announce Karratha Oil Refinery Study

Prime Minister Anthony Albanese and Western Australia Premier Roger Cook announced a $4 million pre-feasibility study for a new large-scale oil refinery in Karratha, Pilbara. Proposed by the industrial company Perdaman, the facility would be the first large-scale petrol refinery constructed in Australia since the 1960s. The project aims to increase sovereign refining capacity and create thousands of jobs, joining existing sites in Brisbane and Geelong.

This initiative is part of a broader $15 billion fuel security package designed to shield Australia from supply disruptions and oil price surges caused by a US-led war on Iran and the closure of the Strait of Hormuz. The broader package includes $7.5 billion for a Fuel and Fertiliser Security Facility and $3.2 billion for a government-owned fuel reserve. While the refinery would still rely on imported crude oil, Resources Minister Madeleine King noted that crude oil is more easily stored than refined products, which enhances strategic sovereign capacity.

In related domestic policy, the federal government indicated that the 16 cent per litre fuel excise cut will likely not be extended beyond Sunday. The administration is shifting focus toward other cost-of-living measures, such as tax cuts. Meanwhile, Coalition Senator Bridget McKenzie urged the government to include alternative fuels, such as biofuels, in its long-term energy strategy.