Despite unions pleading to save jobs Caltex Australia announced today it will be closing the Kurnell Oil Refinery in Sydney's South, during the second half of 2014, shedding more than 300 jobs.

Kurnell is one of two Australian refineries operated by Caltex, with a second facility in Brisbane.

The closure puts Australia in a vulnerable position of relying heavily on fuel resources from Asia.

The company has been considering the closure for months since completing a viability review.

It is believed the refinery will be converted into a major transport fuel import facility.

Director of NRMA motoring and services Alan Evans says Australia needs to have its own fuel security