The Situation:

Australian fuel giant Ampol is set to incur approximately $35 million in costs after Cyclone Alfred disrupted operations at its Lytton refinery earlier this month.

Financial Impact:

In preparation for the cyclone’s arrival, Ampol temporarily shut down the refinery, placing it into a “safe recirculation mode.” This precaution resulted in around 10 days of lost production before the facility was fully operational again.

Adding to the financial strain, severe winds and torrential rain damaged one of the refinery’s crude storage tanks, with repair costs expected to reach $20 million.

The company is also facing an additional $5 million per month in demurrage fees over the next three months as it works to restore its supply chain efficiency.

Wider Implications:

Ampol has indicated that roughly half of these costs are likely to be covered by insurance, helping to mitigate the financial burden.

The Lytton refinery, located in Brisbane, is a critical piece of Australia’s fuel infrastructure, standing as one of only two remaining oil refineries in the country and the largest in operation.

For the latest retailer news and information, check out the ServoPro website or to speak to us about how we can help your business contact us.