Sydney, March 31, 2026, 09:05 AEDT
- Santos moved up delivery of a 575,000-barrel Cooper Basin crude shipment for Viva Energy’s Geelong refinery and offloaded a 150,000-barrel Varanus Island lot to Ampol. 1
- Australia relies on imports for roughly 90% of its fuel, with stockpiles last week at 30 days’ worth of diesel and jet fuel, and 39 days’ supply of petrol. 2
- Canberra is slashing fuel excise by 50% for a three-month stretch, stepping in to guarantee fast-tracked fuel shipments while supply pressures remain. 3
Santos Ltd has accelerated crude deliveries to Australian refiners, advancing a portion of a Cooper Basin cargo for Viva Energy’s Geelong refinery and offloading Varanus Island crude to Ampol. The shift comes as Australia grapples with a fuel crunch linked to Middle East turmoil. Canberra is responding with emergency steps aimed at maintaining supply. 1
Here’s why it’s urgent: Australia brings in roughly 90% of its fuel from overseas, is stuck at level two of its national fuel-security plan, and, as of last week, had just 30 days’ supply of diesel and jet fuel, with 39 days’ worth of petrol. The government responded by slashing fuel excise and stepping up to support spot—or prompt—cargo buys. 2
Santos moved up delivery of roughly 575,000 barrels of Cooper Basin crude by around a month after coordinating with Viva. Last week, it also offloaded 150,000 barrels of Varanus Island crude to Ampol, aiming to bolster domestic refining. 1
Geelong refinery—one of just two left operating in Australia—handles as much as 120,000 barrels daily. Viva chief executive Scott Wyatt said the facility had pushed output to “maximum rates” and prioritized diesel, following a decision to defer maintenance. 4
Santos CEO Kevin Gallagher said the shipments were intended to “maintain stable fuel supply” in a time of market disruption. The statement comes as gas exporters find themselves under fresh political scrutiny over domestic supply and tax issues, with fuel prices on the rise. 4
Santos is facing some tough optics right now. The company, which ranks as Australia’s second-biggest oil and gas producer, shut down Darwin LNG last week for scheduled maintenance linked to the Barossa project’s launch. No timeline yet for when operations will resume. For 2026, Santos is still projecting output between 101 million and 111 million barrels of oil equivalent, with Barossa seen adding around 19 million to that total. 5
Santos, for its part, is working to shore up its local standing even as questions linger over its export operations. On Tuesday, Shell Australia chair Cecile Wake warned that slapping gas exporters with windfall taxes or similar quick measures would deter investment and pose risks to energy security, especially with LNG prices climbing. 6
There’s a chance that shifting more crude to Geelong and Ampol won’t be enough to blunt pressure from policy changes and ongoing operational challenges. Santos also faces risks from a prolonged Darwin LNG shutdown, stricter taxes, or a sharper supply disruption—any of which could keep higher oil and gas prices from flowing through to better results. 5
Santos, for the moment, is showing how quickly local supply can be shifted when needed. Still, officials caution that Australia’s fuel situation is only solid in the short run. If the conflict stretches out, the impact is expected to deepen. 3
