Tomorrow’s meeting between Macfarlane and the oil giants was scheduled to discuss ways refiners can make greater use of biofuels, but the government also believed incrasing refining capacity would take some pressure off soaring fuel prices.

“Given the global shortage of refining capacity, perhaps there is a window of opportunity for Australia," resources and industry minister Ian Macfarlane told the newspaper.

“I will be asking Mobil if they will consider reopening Port Stanvac," Macfarlane said.

Port Stanvac was put on 'care and maintenance' in 2003 in the face of import competition from larger Asian refineries.

In May, ExxonMobil Australia chairman Mark Nolan said the corporation would stick to its commitment to the South Australian Government to re-evaluate the future of the mothballed Port Stanvac refinery in 2006, but it would not bring forward this reassessment despite improved oil refining margins.

"Although the margins have been good since we closed it, we continue to question whether it is a long-term business," Nolan said at the time.