A major fire at one of Australia's two oil refineries has been extinguished, intensifying concerns about petrol supplies amidst a global fuel crunch. Emergency crews responded to the Viva's Corio oil refinery in Geelong, southwest of Melbourne, late Wednesday night after reports of explosions and flames.
The blaze lasted for about 13 hours but thankfully resulted in no injuries, as all workers were safely evacuated. The refinery contributes significantly to Victoria's fuel supply, providing 50% of the state’s needs and 10% of the country’s total supply.
Energy Minister Chris Bowen expressed that the timing of this incident is unfortunate, as Australia’s fuel supplies are already experiencing pressure due to the ongoing conflict in Iran, a situation that has spurred a global oil crisis.
Diesel prices in Australia have seen a sharp increase, nearly doubling in recent weeks. Amid reports of panic buying at fuel stations, airlines have begun scaling back flights due to soaring jet fuel costs. Bowen commented that while the implications of the fire are still being assessed, he is in close contact with both the refinery management and the community.
The cause of the fire has been attributed to equipment failure, and an investigation is underway. The refinery plays a crucial role in processing approximately 120,000 barrels of oil per day and supports over 1,100 jobs. Although some production units were affected, others remain operational. However, petrol, jet fuel, and diesel production are likely to be impacted in an already strained market.
Experts believe that while Australia relies heavily on imported refined fuels, with major suppliers including Singapore and South Korea, this diversified supply chain helps mitigate broader disruptions. However, concerns remain about the limited buffer to absorb future shocks, as highlighted by local officials regarding the severity of the incident.
