Refinery closure cuts diesel supplies

By: Jason Whittaker


Queensland truck drivers and operators will be hit with diesel shortages over the Christmas period, following the closure of Caltex’s

Queensland truck drivers and operators will be hit with diesel shortages over the Christmas period, following the closure of Caltex’s Lytton terminal.

A spokeswoman for Caltex says the company is working to "progressively" begin diesel production, but cannot confirm when the terminal will be reopened.

While Caltex hopes its terminal will resume operation next week, the spokeswoman says diesel has had to be imported from other states to reduce the impact of the closure.

"At this stage we are having problems with supplies," the spokeswoman says.

"We are trying to source other supplies, but unfortunately there will be shortages."

It is unclear if the shortage will lead to a short-term spike in diesel prices, with the spokeswoman saying any rises will be determined by price cycles.

Caltex is currently investigating what caused the facility to lose steam and emit smoke that could be seen suburbs away.

"The refinery is being progressively brought back to production," the spokeswoman says.

The incident follows another problem at the terminal, which was forced to cut diesel supply by 50 percent after its hydro-treating unit malfunctioned.

Caltex says arrangements were previously made to reduce the impact on customers and emergency services by ensuring adequate supplies were available.

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