The Coalition has welcomed plans to examine a new oil refinery in Karratha, but warned Labor must scrap its carbon taxes for the project to succeed.
Leader of the Opposition Angus Taylor said the $4 million pre-feasibility study into Perdaman's proposal was welcome, but was not a fuel security strategy.
"Labor cannot promise a new refinery while its carbon tax is set to cost Australia's last two refineries in Brisbane and Geelong $165 million by 2030," Mr Taylor said.
"Unless Labor scraps these taxes, a new refinery will remain a pipe dream.
"The Coalition will axe Labor's carbon taxes, scrap net zero, extend fuel security support, lift fuel stocks to 60 days, unlock more Australian oil and gas, and fast-track nationally significant projects including the Taroom Trough and Browse Basin."
Leader of The Nationals Matt Canavan said Australia needs to "drill, baby drill" rather than tax our resources sector more, with the current two oil refineries expected pay more than $100 million dollars in carbon tax on some estimates by the end of the decade.
"I would love to see a new refinery and more oil and diesel, but in a cost-of-living crisis, and now a fuel crisis, why on earth would Labor continue to impose a carbon tax?" Senator Canavan said.
"A future Coalition government will scrap carbon taxes and we will scrap net zero. We have sovereignty of our resources and we can use what we have, right here in Australia, to create jobs and create our own energy supply. We can also invest in biofuels and coal-to-liquids technology."
Shadow Minister for Energy Dan Tehan said Labor's own policies were standing in the way of the fuel security Australia urgently needs.
"Labor cannot claim to support a new refinery while its carbon tax is making Australian refining less competitive and pushing up costs," Mr Tehan said.
"Real fuel security means backing Australian production, protecting Australian jobs and ensuring families and businesses are not left exposed to overseas supply shocks."
It comes as Mr Taylor and Mr Canavan tour the Stanwell Power Station with member for Flynn Colin Boyce. Mr Canavan said the coal-fired electricity generator was crucial and the Prime Minister should meet with the Queensland Premier also, to explore improving resources.
"The Queensland Premier has done a fantastic job with the state's resources and the Prime Minister should focus on our national interest to develop our oil and gas reserves," Senator Canavan said.
Member for Flynn Colin Boyce said under Labor, gas prices are up 41 per cent and electricity by 37 per cent.
"We must put all options on the table to lower the cost of fuel, gas and electricity - which is why today's visit to Stanwell Power Station is so important," Mr Boyce said.
