AUSTRALIA ORDERS STUDY INTO FIRST NEW OIL REFINERY IN 60 YEARS

Australia will consider building its first new oil refinery in more than 60 years, Prime Minister Anthony Albanese announced on Tuesday. The Commonwealth and Western Australian governments will jointly fund a A$4 million feasibility study into the project, which would be constructed by industrial chemical producer Perdaman in Western Australia. Albanese stated the refinery would help build Australia's resilience and sovereign capability on fuel, potentially shielding the country from future supply shocks. The announcement follows escalating conflict in the Middle East, which Albanese said is having a global impact on fuel supplies.

Australia has become heavily dependent on imported liquid fuels following a series of refinery closures over the past 25 years, with official figures suggesting the country now imports approximately 90 per cent of its liquid fuels. Only two operating refineries remain nationwide. Treasurer Jim Chalmers warned that the recent escalation of Middle East conflict poses "a substantial threat to global inflation". Petrol and diesel prices have risen by 25 cents and 50 cents per litre respectively this month. Treasury officials cautioned in a special weekend government briefing that oil prices were likely to remain elevated in the near term, stating that "the oil market is now more vulnerable, with weaker buffers against future supply shocks".

If the feasibility study confirms the project is viable, the new refinery would represent a significant shift in Australia's energy infrastructure. Financial markets were pricing a one-in-three chance of a Reserve Bank rate hike on 11 August, reflecting concerns about inflation pressures linked to elevated global oil prices.