Australian fuel giant suggests it may eventually phase out petrol
7news.com.au Jul 10, 2026

Australian fuel giant suggests it may eventually phase out petrol

AI-summarised brief · reviewed before publication

Ampol CEO Matt Halliday indicated that refining and selling petrol may eventually be phased out in Australia as profitability declines amid rising electric vehicle adoption. Halliday told ABC’s That’s Business with Alan Kohler that while diesel and jet fuel remain critical for national security, petrol production is becoming less economically viable. Australia currently relies on just two operational refineries, producing only 20 percent of domestic fuel needs, with supply chains strained by Middle East conflicts. EV market share surged to 23.3 percent in June, while petrol vehicle sales dropped nearly 30 percent. Although Ampol’s charging network offers revenue potential, Halliday noted it may not yet match petrol profits. The shift highlights a strategic challenge: adjusting production toward diesel and jet fuel while managing the logistical costs of exporting excess petrol. This transition reflects broader economic pressures from high fuel prices impacting transport and essential goods across the nation.

💡 Why It Matters

  • · Australia’s reliance on just two refineries creates a fragile energy infrastructure that cannot easily pivot away from petrol without significant logistical costs.
  • · This structural vulnerability forces a difficult choice between maintaining national fuel security for diesel and jet fuel while accepting the economic obsolescence of domestic petrol refining.