‘Unprecedented’ fire at Australian oil refinery to impact nation’s petrol supplies
‘Unprecedented’ fire at Australian oil refinery to impact nation’s petrol supplies
A significant fire erupted at Australia’s sole remaining oil refinery, intensifying concerns about national petrol supplies during a worldwide fuel shortage. The Viva Corio refinery in Geelong, located southwest of Melbourne, was the scene of emergency response efforts after explosions and flames were reported just before midnight on Wednesday.
Refinery’s Production Role
The facility accounts for half of Victoria’s fuel needs and 10% of Australia’s total output. While no injuries have been reported, the blaze is ongoing and has raised alarms regarding air quality in the region. Operations are now limited, with jet fuel and diesel production continuing at reduced levels to ensure safety.
Government and Industry Response
Energy Minister Chris Bowen remarked that the fire was “unfortunate,” given Australia’s fuel supplies are strained due to the ongoing oil crisis triggered by the Iran conflict. Diesel prices have nearly doubled in recent weeks, with stations experiencing shortages and panic buying reported. Airlines are also reducing services as rising jet fuel costs take a toll.
“This is not a positive development, but obviously there’s a long way to go in terms of working out just what the impact is,” Bowen told Nine’s Today show on Thursday, adding he is working closely with the company. “Obviously, this is very early days.”
Cause and Company Statement
Fire Rescue Victoria attributed the fire to “equipment failure,” stating an investigation is underway. The refinery processes approximately 120,000 barrels of crude daily and employs over 1,100 workers. Viva Energy’s CEO, Scott Wyatt, emphasized that safety is the top concern, stating, “Production is not our primary focus today… it’s ensuring the site is secure.”
“But naturally petrol will be one of the products that are potentially impacted,” he said. “We’ll only start increasing production again once we’re confident we can do that safely.”
Expert Assessments and Evacuation
Experts suggest Australia’s dependence on imported refined fuels from Singapore, South Korea, and Malaysia means the impact on domestic availability is likely minimal. “This diversified supply chain provides a degree of resilience against short-term domestic disruptions,” University of Sydney Professor Yuan Chen stated in a statement.
Swinburne University of Technology’s Hussein Dia added, “[It] doesn’t mean people will run out of fuel tomorrow, but it does narrow the buffer we have to absorb shocks.”
Geelong Mayor Stretch Kontelj described the fire as “unprecedented,” indicating it may continue burning for several hours. “I’ve spoken to management this morning, and needless to say, this has been a major shock to them,” he remarked to the ABC. “The fire is still active and will need to burn out. Due to its intensity, fire units could only observe as they struggled to contain it.”
