Potential for first Australian oil refinery in 60 years as treasurer braces for inflation from Middle East war

The Guardian (World)IndependentCenter8 hr. ago

Australia is considering building its first new oil refinery in 60 years, potentially located in Western Australia, as part of a broader strategy to reduce reliance on imported fuels. The proposal follows a series of refinery closures since the 1990s, leaving Australia dependent on foreign oil imports—about 90% of its liquid fuels. This vulnerability has been highlighted by rising oil prices due to the ongoing Middle East conflict, which the Treasurer, Jim Chalmers, warns could threaten global inflation. The government plans to fund a $4 million feasibility study, with support from both federal and state authorities. The project would be developed by Perdaman, a multinational firm with experience in the region, though it would require significant investment and possible government financial assistance. The move aligns with a larger $10.7 billion fuel security initiative aimed at enhancing energy independence.

Bias read (Center): The article presents the government's strategic decision to build a new oil refinery as a response to economic and geopolitical pressures, without overtly endorsing or criticizing the policy. It provides balanced information about the background, costs, and implications of the proposal, including a