The potential closure of Caltex's Kurnell refinery would be a body blow to the NSW economy, and would leave Australian motorists exposed to future petrol prices, says the Australian Worker’s Union.

 

AWU National Secretary Paul Howes today said the future of the Kurnell refinery was on a knife's edge, with about 800 jobs at risk.

 

"Caltex will ultimately make a commercial decision based on whether or not they can make more profit by importing petrol, rather than refining it in Australia.

 

"It is clearly a marginal decision for the company, but the implications for motorists and workers are serious – especially if Caltex gets it wrong.

 

"Retaining a local manufacturing presence would give Caltex greater flexibility, and would be an important safeguard for motorists should there be a spike in the cost of imported fuel."

 

Mr Howes said the AWU was working with Caltex's local management to deliver productivity gains at the Kurnell refinery.

 

"The Kurnell refinery plays an important role in Australia's energy security. We cannot afford to reduce our domestic refining capacity."