BP Australia has announced it will stop fuel production at its Kwinana Refinery – instead it will be converted into an import terminal.

Refining activities will wind down over the next six months—currently around 650 people are employed by the refinery with 400 permanent staff and 250 contractors.

The import terminal will only support around 60 positions.

In a statement BP Australia said the refinery was no longer economically viable and job losses are deeply regrettable.

Gareth Parker spoke to Mines and Petroleum Minister Bill Johnstone, Member for Canning Andrew Hastie and City of Kwinana Mayor Carol Adams.

Mr Hastie, who has campaigned for some time to more fuel reserves in Australia said he was “troubled as a policy maker and gutted as an Australian.