Fed govt could reopen petrol refinery

The federal government is considering a plan to reopen a mothballed oil refinery in Adelaide's south to introduce greater competition and lower prices to the petrol market.

Fairfax newspapers reported on Tuesday that government sources had confirmed the federal and South Australian governments had discussed re-opening the Port Stanvac refinery, which closed in 2003.

Assistant federal treasurer Chris Bowen, the minister with responsibility for petrol, supported the plan.

"I certainly think there's a case for Port Stanvac to be operational," he told Fairfax.

"I see this as a joint project between us and the Australian Competition and Consumer Commission."

But the SA government has selected the heavily polluted site as the best place for its planned desalination plant, the report said.

Before its closure, the refinery supplied about 10 per cent of Australia's petrol, and motoring groups said its closure caused a spike in SA fuel prices, the report said.

The Howard government unsuccessfully pursued the refinery reopening.

The latest proposal has been revealed as the ACCC prepares to talk tough with the major petrol companies over high fuel prices.

"I'm going to get all the relevant facts together over the next few days," ACCC chairman Graeme Samuel told ABC Television on Monday.

"I'm not going to call them in together for a meeting, I want to deal with them each separately and deal with the chief executives.

"Frankly, I will be saying to them that we are absolutely frustrated and bewildered at the fact that this new domestic excuse is now being provided ... and frankly, we're bewildered by the fact that they're just so insensitive to community anger and outrage at this sort of situation."

Source: AAP 2008

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