Australian Government Steps in to Rescue Refiners, an Industrial Info Market Brief

In recent years, the Australian refining sector has suffered from an oversupply of production in Asia due to lower fuel demand growth and increases in regional refining capacity. This was intensified when COVID-19 emerged resulting in an oil glut coupled with a recent price war among the major crude exporting countries. Faced with a daunting future, the four refineries in Australia, namely Altona, Geelong, Kwinana, and Lytton all face significant losses and may even have to consider permanent closure. Acknowledging the importance of refining in Australia's fuel security as well as its contribution to the economy, the federal government announced on September 14 a stimulus package to enhance the industry's long-term viability, according to Reuters. The package includes incentives worth as much $1.67 billion over 10 years.