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Australia’s oil refinery capacity amounted to about *** thousand barrels per day in 2024, remaining consistent with the previous year's capacity. This stable yet significantly reduced capacity highlights a long-term decline in fuel demand. The coronavirus pandemic, which led to a halt in air passenger transport across the globe, significantly impacted fuel demand.

Crude oil – a versatile raw material

Oil refinery is needed to convert crude oil into useful fuels such as petrol, diesel, jet fuel, and LPG. Almost half of the crude oil processed in Australia was used for petrol. While Australia does produce crude oil itself, most of its crude oil is imported in order to fill its oil reserves. A stockpile of ** days’ worth of net-oil imports was required in case of supply disruptions.

Australia’s refinery outlook

Australia’s ability to process crude oil has recently become a cause for concern. The closure of the Caltex Refinery in Brisbane has left the country with just operating refineries. It was closed in part due to the declining demand for processed fuel products due to the coronavirus outbreak. For a country that is already dependent on imports to meet its fuel demand, the closure of its refineries may mean an even greater dependence on internationally processed fuel in the future.