Australian PM says refinery fire will not trigger fuel rationing

Australia’s fuel production has taken a hit after a significant fire at a key oil refinery, but the government has confirmed that no immediate fuel rationing measures will be introduced.

Operations at Viva’s Corio refinery near Geelong were disrupted following a major blaze caused by equipment failure just before midnight on Wednesday. The fire burned for around 13 hours, reducing output at one of only two refineries in the country.

The facility normally supplies around 50% of Victoria’s fuel needs and roughly 10% of national demand. Authorities say production of diesel, aviation fuel, and petrol has been affected, although operations are gradually continuing at reduced levels.

Prime Minister Anthony Albanese said approximately 80% of diesel production and aviation fuel output remains active, while petrol production stands at around 60%. He added that both the government and the company expect production levels to recover over time.

Despite concerns over supply pressures, particularly amid global oil market constraints, the government confirmed Australia will remain at stage two of its four-level fuel security framework. This means no restrictive measures such as rationing will be introduced at this stage.

Albanese also emphasized the importance of strengthening national fuel resilience. He recently returned from a diplomatic trip to Southeast Asia aimed at securing additional fuel supplies and announced agreements for an extra 100 million litres of diesel from Brunei and South Korea.

The prime minister noted that Australia’s reliance on imported refined fuel highlights the need for stronger domestic refining capacity in the future.