Major fire at Viva Energy refinery may affect Australia’s fuel availability

Explosions followed by a major fire at a crucial oil refinery in Australia have raised concerns about fuel supply, with authorities warning of disruptions to petrol production at a critical time for global energy markets.

The incident occurred at the Geelong Oil Refinery, operated by Viva Energy, located near Melbourne. The blaze broke out late on April 15 night after a gas leak triggered a series of explosions, sending flames as high as 60 metres into the air.

Fire crews battled the blaze for several hours before bringing it under control, with no injuries reported. Authorities said the fire primarily affected units responsible for producing high-octane petrol, while other sections of the refinery were isolated to prevent further damage.

The refinery is one of only two operational facilities in Australia and plays a critical role in the country’s fuel supply, producing about 10% of national demand and supplying roughly half of the fuel used in the state of Victoria.

Officials said petrol and aviation gasoline output is expected to be impacted, while diesel and jet fuel production continues at reduced levels as a safety precaution. The full extent of the damage is still being assessed.

The incident comes at a particularly sensitive time, as Australia remains heavily dependent on fuel imports, meeting nearly 80 per cent of its demand from overseas. The ongoing global energy disruption linked to the Iran conflict has already strained supply chains and pushed up fuel prices.

Energy Minister Chris Bowen acknowledged the timing of the fire as a setback but said the government and industry are working to minimise the impact. Authorities indicated that additional fuel imports may be used to offset any shortfall in domestic production.

Prime Minister Anthony Albanese is also engaging with regional suppliers to secure additional fuel supplies, as concerns grow over potential price increases and supply pressure in the coming weeks.

Investigations into the cause of the fire are underway, with initial indications pointing to a mechanical fault leading to a gas leak.

The refinery continues to operate at reduced capacity, and authorities are closely monitoring the situation as efforts continue to restore normal production.