Viva, Ampol shun Russian oil cargoes over war in Ukraine

Ampol and Viva Energy, two of Australia’s largest fuel suppliers, have stopped buying Russian crude oil as the war in Ukraine continues.

Viva, the operator of the Geelong oil refinery and the nationwide network of Shell and Liberty petrol stations, said it was “appalled by the events unfolding in Ukraine” and extended its sympathies to those affected by the conflict.

“As a consequence and in response, Viva Energy has made the decision to cease purchases of crude oil of Russian origin,” the company said on Tuesday.

Viva has been exploring options to dispose of two Russian-origin crude cargoes purchased before the conflict, due to arrive in Australia over the next two months, but had been unable to find credible buyers.

“Without these supplies, the company faces gaps in its refining program and potential fuel shortages.”

Loading

ASX-listed fuel giant Ampol on Tuesday also condemned Russia’s actions in Ukraine and confirmed it had not purchased Russian crude oil or other fuel products since the onset of the conflict. However, it had also previously purchased two Russian cargoes prior to the invasion that were due to discharge by the end of April.

Russia is a major global oil supplier accounting for up to 11 per cent of the world’s crude oil production. As Western nations impose economic sanctions on Moscow and global investors, refineries and shippers shun Russia’s vast energy sector, the price of crude oil has pushed past $US100 a barrel and reached as high as $US139 earlier this week, its highest level since 2008.

Australian motorists are already paying record high unleaded prices of about $2 a litre in some parts of the country and economists are now expecting prices to soon exceed $2.10. Australia’s petrol prices are linked to international oil markets via the Singapore refined unleaded benchmark, known as Mogas 95.