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

A major fire broke out at the Viva Energy oil refinery in Corio, Geelong, southwest of Melbourne, causing significant damage and raising concerns about Australia’s petrol supply. The blaze, which began just before midnight and burned for 13 hours, has been extinguished with no injuries reported. The refinery, responsible for producing 50% of Victoria’s fuel and about 10% of the nation’s petrol, remains partially operational, but authorities warn that fuel production will be impacted. The fire was caused by equipment failure, according to Fire Rescue Victoria, which has launched an investigation. Viva Energy’s CEO Scott Wyatt confirmed that two petrol production units were affected, while other units remained undamaged. Production of jet fuel and diesel has also been reduced as a precaution, with a cautious approach to resuming full operations. The refinery processes approximately 120,000 barrels of oil daily and employs over 1,100 people. This incident comes amid a global fuel crunch exacerbated by geopolitical tensions, including the war in Iran, which has already pushed diesel prices in Australia to double in recent weeks. Fuel shortages and panic buying have been reported, while airlines have cut some services due to rising jet fuel costs. Energy Minister Chris Bowen described the timing of the fire as unfortunate, emphasizing ongoing efforts to assess the full impact and coordinate with Viva Energy. Despite the disruption, experts note that Australia’s reliance on imported refined fuels from countries like Singapore, South Korea, and Malaysia provides some resilience against domestic supply shocks. However, the fire narrows the buffer available to absorb further disruptions. Geelong Mayor Stretch Kontelj described the fire as “unprecedented,” highlighting the significant impact on the local community and the refinery’s operations.