A major Australian refinery fire has disrupted fuel production at Viva Energy Refinery in Victoria, raising concerns over domestic supply after explosions tore through one of the country’s two operational oil refineries.
Towering flames, reaching up to 60 metres, erupted late on Wednesday night following a gas leak that ignited at the facility, located about an hour southwest of Melbourne. Authorities confirmed the blaze spread rapidly through a key section responsible for high-octane petrol production, significantly affecting output.
“The major impact at this point appears to be on petrol production,” Energy Minister Chris Bowen said, adding: “It’s not great. It’s not great timing, is it?”
The refinery, operated by Viva Energy, accounts for roughly 10 per cent of Australia’s fuel supply and has a processing capacity of up to 120,000 barrels per day. While the petrol unit sustained heavy damage, other sections producing jet fuel and diesel were protected after isolation valves were activated.
Emergency officials said the fire was triggered by a “significant leak” of highly flammable gases and liquid hydrocarbons. Incident controller Mark McGuinness said the blaze intensified rapidly. “It was quite ferocious. It went from a small fire through several explosions to a large, intense fire,” he said, adding that the fire continued burning overnight and was expected to last several more hours.
Images from Thursday morning showed thick plumes of smoke rising above the industrial complex, underlining the scale of the incident and its potential operational impact.
Australia’s fuel security remains structurally vulnerable due to its limited refining capacity and reliance on imports. With only two operational refineries, disruptions at a single facility can significantly affect domestic supply chains. Government data shows the country holds around 38 days of petrol reserves, well below the 90-day benchmark set by the International Energy Agency.
Chris Bowen urged consumers not to panic buy fuel despite the disruption. “It’s important that people buy as much fuel as they need. But no more, no less,” he said.
The incident also comes amid heightened global energy tensions. Like many countries in Asia and the South Pacific, Australia depends heavily on oil shipments passing through the Strait of Hormuz, where traffic has effectively halted following US and Israeli strikes on Iran on 28 February.
While authorities have not introduced fuel rationing measures, they have advised motorists to conserve fuel and consider public transport as a precaution. The government is continuing to monitor supply conditions closely as recovery efforts at the refinery progress.
