Australia’s unresolved fuel security risks

Lack of competitiveness in refining sector and underbaked oil reserves threaten long-term stability

Australia’s deteriorating fuel security captured media attention and forced a political intervention just three years ago. Since then, the public discourse has fizzled out even though underlying issues persist. With two of the country’s last four refineries shutting in 2020–21 and the other two considering doing so, the increasingly vulnerable nature of the country’s fuel supply chain became apparent. Not only was Australia on the verge of losing its domestic refining sector, but its strategic petroleum reserve (SPR)—which held around 50 days of net imports—was far short of its requirement as an IEA member to hold 90 days of imports. The refining sector crisis prompted the then Coalition gov