Petrol and diesel supplier Ampol will delay a planned two-month shutdown of its Brisbane refinery in the wake of the fuel crisis that has gripped the nation as a result of the Iran war, and is working to source alternative fuels after China clamped down on exports.
In the first comments Ampol has made since the start of the war on February 28, which has thrown global oil and gas markets into turmoil, the company pointed to “some industry disruption” to fuel supplies from Asia, and said it was “working on additional sources” to find alternative supplies of fuels for Australia.
The war between Iran and the United States has triggered the closure of the Strait of Hormuz, including the cancellation of Chinese exports.
Suitable grades of crude oil for Ampol’s Lytton refinery “remain available in market”, the company said, noting that its plant uses different grades of crude to those that are sourced from the Middle East.
Ampol chief executive Matt Halliday also welcomed changes announced on Friday to the federal government’s refining subsidy scheme, which should make it easier to claim payments.
“We welcome the adjustments made to the FSSP [Fuel Security Services Payment], which effectively increase the level at which payments under the scheme will commence,” Halliday said.
“The important role Australian refineries play in supporting the resilience of our domestic fuel supply is being reinforced in the current global oil market environment.”
The tweaks to the system retain the subsidy payment at up to 1.8¢ a litre for fuel produced in Australia’s two remaining oil refineries.
Ampol said it anticipates engaging with the federal government on a second phase of the review that would address long-term security of the plants.
Under the current framework, the future operations of the country’s two refineries are not guaranteed past the middle of next year.
Extracted in full from: https://www.afr.com/companies/energy/ampol-defers-refinery-maintenance-and-scrambles-for-alternative-fuels-20260320-p5qsdc
