A major fire at one of Australia's two oil refineries has been extinguished, but the damage has deepened fears over the nation's petrol supplies amid a global fuel crunch. Emergency crews rushed to Viva's Corio oil refinery in Geelong, southwest of Melbourne, just before midnight on Wednesday, following reports of explosions and flames.
The blaze was put out on Thursday after burning for 13 hours. Fortunately, no one was injured, as dozens of workers present on site were evacuated safely. The refinery, which produces 50% of Victoria's fuel and 10% of the nation's, remains partially operational, but the government has issued warnings regarding the potential impacts on petrol production.
Energy Minister Chris Bowen stated that the fire struck at a challenging time, given the ongoing pressures on Australia's fuel supply since the outbreak of war in Iran, leading to a global oil crisis. The price of diesel in Australia has dramatically increased in recent weeks, with fuel stations experiencing shortages due to panic buying, while some airlines are scaling back services amid rising jet fuel costs.
Bowen remarked, '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.' The fire's cause has been attributed to 'equipment failure' according to Fire Rescue Victoria, and an investigation is underway.
The refinery processes about 120,000 barrels of oil per day and employs over 1,100 individuals. Viva Energy CEO Scott Wyatt reported that while two petrol production units were affected by the fire, others remained undamaged. However, petrol, jet fuel, and diesel output are all being produced at reduced levels as a safety precaution.
Experts have indicated that although Australia heavily relies on imported refined fuels from countries like Singapore, South Korea, and Malaysia, the diversified supply chain may provide some resilience against short-term disruptions caused by the fire. Professor Yuan Chen from the University of Sydney commented on the situation, suggesting it does not mean immediate fuel shortages, but it does reduce the buffer to absorb shocks in supply.
Geelong Mayor Stretch Kontelj described the fire as 'unprecedented,' noting that it has significantly disrupted operations at the refinery and has had a considerable impact on the local community.
The blaze was put out on Thursday after burning for 13 hours. Fortunately, no one was injured, as dozens of workers present on site were evacuated safely. The refinery, which produces 50% of Victoria's fuel and 10% of the nation's, remains partially operational, but the government has issued warnings regarding the potential impacts on petrol production.
Energy Minister Chris Bowen stated that the fire struck at a challenging time, given the ongoing pressures on Australia's fuel supply since the outbreak of war in Iran, leading to a global oil crisis. The price of diesel in Australia has dramatically increased in recent weeks, with fuel stations experiencing shortages due to panic buying, while some airlines are scaling back services amid rising jet fuel costs.
Bowen remarked, '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.' The fire's cause has been attributed to 'equipment failure' according to Fire Rescue Victoria, and an investigation is underway.
The refinery processes about 120,000 barrels of oil per day and employs over 1,100 individuals. Viva Energy CEO Scott Wyatt reported that while two petrol production units were affected by the fire, others remained undamaged. However, petrol, jet fuel, and diesel output are all being produced at reduced levels as a safety precaution.
Experts have indicated that although Australia heavily relies on imported refined fuels from countries like Singapore, South Korea, and Malaysia, the diversified supply chain may provide some resilience against short-term disruptions caused by the fire. Professor Yuan Chen from the University of Sydney commented on the situation, suggesting it does not mean immediate fuel shortages, but it does reduce the buffer to absorb shocks in supply.
Geelong Mayor Stretch Kontelj described the fire as 'unprecedented,' noting that it has significantly disrupted operations at the refinery and has had a considerable impact on the local community.
