A major fire broke out late Wednesday night at the Viva Energy refinery in Geelong, one of only two operating oil refineries in Australia, triggering fears of disruptions to domestic fuel supply. Flames reaching up to 60 metres (around 200 feet) erupted following a significant leak of highly flammable gases and liquid hydrocarbons, which sparked a chain of explosions. Firefighters battled the blaze for several hours, with authorities confirming no injuries among the more than 1,100 workers at the facility.

The refinery, located in the Corio area near Geelong and about an hour from Melbourne, processes up to 120,000 barrels of oil per day. It supplies approximately 50% of Victoria’s fuel needs and around 10% of Australia’s total fuel consumption. The fire severely damaged the motor gasoline production unit, forcing the facility to operate at minimum rates. Energy Minister Chris Bowen stated that the major impact so far has been on petrol production, while diesel and jet fuel output continues at reduced levels.

Viva Energy confirmed that gasoline and aviation gasoline have been affected, though the company plans to mitigate losses through increased imports. The incident comes amid broader concerns over Australia’s fuel security, as the country relies on imports for about 80% of its needs. Global oil markets are already strained by ongoing conflicts in the Middle East, including disruptions linked to tensions involving Iran, which have heightened worries about supply shortages and price volatility.

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Officials have described the timing as particularly challenging. Prime Minister Anthony Albanese called the blaze “distressing” and warned of potential consequences for fuel supply. Analysts and politicians have highlighted Australia’s vulnerability due to the closure of several refineries in recent years, leaving the nation with limited domestic refining capacity. Some have labelled the reduced self-sufficiency a “disgrace,” especially as the country works to secure additional shipments from regional partners.

The government has ruled out immediate fuel restrictions and noted that reserves and alternative arrangements, including recent deals for additional diesel, provide some buffer. However, experts warn of possible short-term price increases, particularly for petrol in Victoria, with potential flow-on effects to transport, logistics, and the broader economy. The full extent of damage and downtime at the refinery remains under assessment, with the company placing its shares in a trading halt.

This incident underscores ongoing debates about Australia’s energy infrastructure and the need for greater domestic fuel resilience. As investigations into the cause—initially linked to equipment failure or a small leak—continue, authorities and the company are focused on safely containing the situation and restoring operations. The refinery’s role in the national supply chain makes the event a significant test for Australia’s preparedness in an increasingly uncertain global energy landscape.

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