The Big Issue: Building Australia’s fuel security in an insecure world

For well over half a century, the AWU has proudly represented the workers that built, maintained and operated Australia’s fleet of oil wells and refineries. These workers have kept Australian industry and households moving in the most direct sense.

But in 2026, our fuel security has never looked so precarious. At the industry’s peak, eight oil refineries pumped out millions of barrels across Australia every week, meeting nearly 100% of domestic fuel demand.

But closures began in 2003, and over the next twenty years, six refineries were either demolished or converted to import terminals. Now, we import 90% of our liquid fuels, mostly from Asia, and our stockpiles of diesel, petrol and jet fuel sit between 30 to 48 days – by far the lowest of any International Energy Agency member nation.

It was the AWU that stopped our refining industry from closing completely. In 2021, a team of delegates, backed by their union, led efforts to secure emergency funding from the federal government to keep Australia’s last two refineries – Ampol Lytton and Viva Geelong – open. But these refineries don’t come close to meeting Australia’s needs on their own.

Liquid fuels remain our number one source of energy today. Key industries for the AWU and the country – construction, agriculture, mining and more – rely on petrol and diesel to survive. Mining alone accounts for a third of Australia’s diesel consumption.

The US-Israel-Iran war and the closure of the Strait of Hormuz – a vital global shipping route – have upended global energy markets and sent fuel prices spiralling, hitting Australian households and industry with sky-high bills. Scarce supply of fuel and other important products made in the Gulf are projected to impact AWU industries well into next year. Without an adequate response, this risks workers’ job security, wage increases during EA negotiations, and career progressions.

The past few months underscore the real need to invest in and enhance Australia’s fuel security. Labor’s recent Federal Budget commits to doing just that, with over $10 billion to boost domestic fuel supplies and stockpiles. The Fuel Security and Resilience Package will increase Australia’s minimum fuel stocks by ten days, including via a government-owned fuel reserve that will hold a billion litres of emergency diesel and aviation fuel. The package allocates a further $7.5 billion to support local fuel companies. 

These measures are incredibly important and will help shore up our fuel security. But they remain high-level commitments. We need further detail and concrete action. The AWU will work with the federal government over the coming months to make sure that’s exactly what happens.

We are also backing the federal government’s Cleaner Fuels Program, which allocates significant funding to support our nation’s low carbon liquid fuel capacity and develop domestic production. If done right, this new industry could eventually support thousands of jobs, higher local fuel production, and long-term job security for AWU members at the Lytton and Geelong refineries. As the government rolls out the Cleaner Fuels Program, the AWU will continue to keep a sharp eye on proceedings.

Nonetheless, low carbon liquid fuels are a long-term opportunity, not a short-term solution. There are no complete fixes to today’s fuel crisis, but we should still take any and all actions available to us to enhance Australia’s fuel security. In the coming months, the AWU will work through solutions to this urgent question, with the aim to present a bold policy to increase fuel security at this year’s National Conference.   

Fuel security is ultimately a question of sovereignty. A nation that cannot fuel itself cannot feed itself, shelter itself or defend itself in a crisis. Without adequate domestic storage and refining capacity, Australia runs the risk of isolation and decay during a global trade war (or worse).

In just a few years, COVID-19, the war in Ukraine and the US-Israel-Iran war have exposed the serious weakness of international supply chains. Ensuring Australia has enough fuel to keep workers, industry and vital services moving during a crisis should be top of mind for governments. The AWU will continue to fight hard to expand our fuel security and ensure that no matter what happens in the years to come, Australia will always keep moving.