‘Unprecedented’ fire at Australian oil refinery to impact nation’s petrol supplies

Unprecedented Fire at Australian Oil Refinery to Impact Petrol Supplies

A significant fire has erupted at an Australian oil refinery, intensifying concerns regarding the country’s gasoline supply during a worldwide fuel shortage. Emergency personnel swiftly responded to the Viva Corio oil refinery in Geelong, a city located southwest of Melbourne, shortly before midnight on Wednesday, following reports of explosions and visible flames.

The facility accounts for half of Victoria’s fuel output and 10% of the national total. No casualties have been reported, yet the fire remains active and has prompted warnings about air quality in the area. While the refinery is still partially operational—jet fuel and diesel will continue to be produced at reduced levels as a safety measure—the government has warned of potential disruptions to petrol supply chains.

“This is not a favorable moment, as Australia’s fuel reserves are strained due to the ongoing oil crisis triggered by the conflict in Iran,” Energy Minister Chris Bowen stated during an interview with Nine’s Today show on Thursday. “Obviously, this is very early days.”

Australian diesel prices have doubled in recent weeks, with fuel stations reporting shortages and instances of panic buying. Airlines are also reducing some services as jet fuel costs climb. Viva Energy chief executive Scott Wyatt highlighted that safety is the top priority, stating, “Production is not our main focus today… it’s getting the site safe.” He noted that two petrol production units were affected, though others remained undamaged.

The cause of the fire was attributed to “equipment malfunction,” according to Fire Rescue Victoria, with an investigation ongoing. The refinery processes about 120,000 barrels of oil per day and employs over 1,100 workers. Geelong Mayor Stretch Kontelj called the fire “unprecedented” and estimated it will persist for several hours.

“I’ve spoken to management this morning and needless to say, this has been a huge shock and has rocked them,” Kontelj told the Australian Broadcasting Corporation (ABC). “The fire is still burning and will have to just burn out. Because of the intensity, it was difficult for the fire units to do much other than to watch.”

Experts argue that Australia’s reliance on imported refined fuels—primarily from Singapore, South Korea, and Malaysia—suggests the fire’s effect on domestic fuel availability is limited. “This diversified supply chain provides a degree of resilience against short-term domestic disruptions,” said University of Sydney Professor Yuan Chen. “It doesn’t mean people will run out of fuel tomorrow, but it does narrow the buffer we have to absorb shocks,” added Swinburne University of Technology’s Hussein Dia.