Major blaze hits Australian oil refinery, raising fuel supply concerns

A large fire at one of Australia’s key oil refineries has heightened concerns about petrol availability, as the country grapples with an already strained global fuel market.

Emergency services were called to the Viva Energy refinery in Corio, Geelong—southwest of Melbourne—late Wednesday night following reports of explosions and visible flames. The facility plays a critical role in the region’s energy supply, producing around half of Victoria’s fuel and roughly 10 percent of Australia’s total output.

While no injuries have been reported, the fire continues to burn, prompting authorities to issue air quality warnings for nearby communities.

Operations at the refinery have been partially maintained, with jet fuel and diesel production continuing at reduced capacity for safety reasons. However, officials have cautioned that petrol output could be affected.

Energy Minister Chris Bowen described the incident as poorly timed, noting that Australia’s fuel supply has already been under pressure due to rising global oil prices linked to conflict in the Middle East.

In recent weeks, diesel prices in Australia have surged sharply, with some areas reporting supply shortages and increased demand driven by panic buying. Airlines have also begun scaling back services as jet fuel costs climb.

Bowen said it remains too early to fully assess the long-term impact of the fire, adding that the government is closely monitoring the situation and working with the refinery operator.

Authorities believe the blaze was caused by an equipment malfunction, with a formal investigation set to follow.

The Geelong refinery, which processes approximately 120,000 barrels of oil per day and employs more than 1,100 workers, saw several units affected by the fire. According to Viva Energy CEO Scott Wyatt, safety remains the top priority before any attempt is made to restore full production.

Although some petrol-producing units were impacted, others remain intact. However, officials warned that petrol supply could still face disruptions depending on the extent of the damage.

At the time of the incident, between 50 and 100 workers were on-site but were safely evacuated.

Geelong Mayor Stretch Kontelj described the fire as unprecedented, noting that its intensity limited firefighting efforts and that it may take several hours to fully extinguish.