Reduced oil refining capacity forces government to raise mandatory fuel stock minimum

Energy Minister Angus Taylor says the Australian government is increasing its fuel stocks but would “prefer to have that refining capacity” as pressure builds on fuel security after ExxonMobil plans to close its Altona oil refinery.

ExxonMobil announced on quarta-feira it will close the refinery in Melbourne’s west which first opened in 1949.

Mr Taylor said Exxon made it very clear “it wouldn’t matter what we put on the table” as it was determined to make the decision anyway.

He said with reduced refining capacity due to the closure, the government has decided to raise the minimum fuel stock holding.

“As of November last year we had about 86 days (of fuel), we averaged 81 days across the year, but it needs to be higher which is why we’ve recently set a mandatory minimum stock holding with a particular focus on diesel,” Mr Taylor said.

“We expect those oil companies to hold those higher levels of stock. It’s important we get our stock levels up too the government has stepped in in recent months.

“Fuel security can be managed by increased stocks too we’re doing exactly that, but we would prefer to have that refining capacity.”