Threat to Petrol Supplies !

 In recent years Australia's oil refining plants have been steadily closing, and it is all a matter of costs.  The giant refineries in Asia can do the job at a lower cost because of the volume handled and now most of our petrol and diesel fuel arrives by ship.

We used to have a New South Wales refinery at Kurnell, but that no longer refines oil and now serves as a storage depot for the finished product from overseas.  We are supposed to have a ninety day stockpile of fuel in Australia as a backup to transport delays, but our holding is far less.

News that two of our remaining refineries were scheduled to close alarmed the government and forced a rethink.  They are offering a $2.4 billion package to enable the Viva refinery in Geelong and the Ampol refinery  in Lytton near Brisbane to remain operational and upgrade their fuel to the standard required for European cars.

The urgency of this package was illustrated by the closure of of BP's Kwinana refinery in Western Australia which produced more that one fifth of Australia's fuel making capacity.   We were skating perilously close to becoming an oil producing country that lacks the ability to service its own fuel needs.

Perhaps the prospect of a change to electric cars brought an attitude of fuel complacancy but relying on overseas refining leaves us vulnerable, from both an economic and a defence point of view.  It is as long time since the last petrol tanker drivers strike but older people remember the chaos of petrol rationing and the " odds and evens " system of number plate priority.

It is that same fuel that keeps our naval ships operating and our fighter jets flying.  Without petrol and diesel our road transport of food supplies ceases and the supermarkets  would close their doors. Fuel is the arterial blood that keeps the nation's heart beating.

We would be relying on stability in a dangerous world.  To our north, those fuel supplies pass through the South China Sea which is claimed by China and is frequently the scene of naval tension.  There is often political tension  in our Asian neighbours, some of whom have suffered coups.  The stability of our fuel supplies can not be guaranteed when refining and delivery is beyond our control.

Keeping our refineries open is money well spent.  We also need to look to our fuel reserves.  It is essential that our armed forces are able to move quickly in an emergency and it would be wise if they had fuel stocks in hand at bases throughout Australia and not relying on the commercial system to supply their needs at short notice. Keeping refineries active in Australia may cost us a few cents more at the  fuel pump but that is a small price to pay for national security.