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Fire Erupts at Geelong Refinery, Threatening Fuel Supply

The explosion raises concerns over fuel availability as tensions escalate in the Middle East.

Category: Business

Firefighters are battling a massive blaze at Viva Energy’s Geelong refinery, which erupted late Wednesday night, April 15, 2026, following reports of explosions and a gas leak. The incident has raised alarms about potential disruptions to fuel supplies in Victoria and beyond.

Why it matters: The Geelong refinery is one of Australia’s two remaining oil refineries, supplying more than half of Victoria’s fuel and about 10% of national fuel needs. Its operational capacity is now in jeopardy due to this fire.

  • Fire Rescue Victoria (FRV) crews were dispatched to the facility around 11pm after reports of flames and loud blasts.
  • All workers on site—approximately 50—were evacuated safely, with no injuries reported.
  • The fire, which took firefighters about 13 hours to extinguish, was still burning early Thursday morning, contained to an area of about 30 metres by 30 metres.

Driving the news: The blaze started in the MOGAS (motor gasoline) section of the refinery, where operators noticed a drop in pressure before the explosion occurred. This led to an immediate emergency response.

  • Emergency services activated isolation valves to limit fuel flow to the affected section, mitigating the risk of a larger disaster.
  • Specialised remote-controlled monitors were employed to combat the fire from a safer distance due to volatile conditions.
  • FRV Assistant Chief Fire Officer Michael McGuinness described the incident as a ferocious blaze involving several explosions.

State of play: The refinery remains operational, but the incident has impacted production levels, particularly for petrol.

  • Energy Minister Chris Bowen confirmed that the fire would affect petrol production, particularly in the section responsible for motor gasoline.
  • Viva Energy CEO Scott Wyatt reported that the refinery was producing about 60% of its petrol capacity and 80% of diesel, with hopes to increase output as conditions allow.
  • Bowen emphasized that the situation is still developing and that assessments on production levels are underway.

The big picture: The fire at the Geelong refinery comes at a time of heightened global fuel supply concerns, exacerbated by conflicts in the Middle East.

  • With tensions rising between the United States, Israel, and Iran, the refinery's operational issues could lead to price surges across Victoria.
  • The Geelong facility’s age and maintenance practices have drawn scrutiny, particularly in light of previous safety incidents and regulatory oversight.
  • Experts have warned that the age of the plant, which opened in 1956, poses inherent risks due to potential equipment degradation.

What they're saying: Officials from both the federal government and Viva Energy have attempted to downplay the fire’s impact on fuel availability.

  • Prime Minister Anthony Albanese, who returned early from a trip to Southeast Asia, stated the incident would only cause a slight slowdown in production.
  • Scott Wyatt assured stakeholders that the refinery could continue to operate close to full production without the damaged units, emphasizing the importance of maintaining output during supply shortages.
  • AMWU organizer Tony Hynds expressed concern over safety conditions at the plant, noting that if the explosion had occurred during the day, the outcome could have been much worse.

By the numbers: The Geelong refinery has a processing capacity of up to 120,000 barrels of oil per day and employs over 1,100 workers.

  • Before the incident, the refinery was operating at full capacity, producing various fuels including petrol, diesel, LPG, jet fuel, and avgas.
  • The fire has already led to a reduction in petrol production, with estimates indicating a possible long-term impact on fuel supply.
  • Local residents were warned to stay indoors as smoke from the fire spread across Geelong, highlighting the incident’s immediate environmental impact.

What's next: Investigations into the cause of the fire are yet to begin, but officials have indicated that a mechanical or engineering failure is suspected.

  • Viva Energy is expected to assess the damage and implement necessary repairs before returning to full operational capacity.
  • As the situation develops, stakeholders will be closely monitoring fuel production levels and potential impacts on prices across Victoria.
  • Authorities are also expected to review safety protocols and maintenance practices at the aging facility to prevent future incidents.