Refinery Blaze in Australia Sparks Supply Concerns Amid Global Fuel Strain

A major fire at a key oil refinery in southeastern Australia has raised concerns about fuel supply disruptions, as authorities work to contain the damage and assess its impact on petrol production.

The incident occurred late Wednesday at the Viva Energy refinery in Victoria state, one of only two operational refineries in the country. Emergency services said a gas leak ignited a series of explosions, sending flames soaring as high as 60 metres and engulfing part of the facility.

Fire Rescue Victoria confirmed on Thursday that the blaze had been brought under control, although crews warned it could continue to smoulder for several hours. Thick smoke was seen rising above the industrial site, located about an hour southwest of Melbourne.

Energy Minister Chris Bowen said the most immediate effect appears to be on petrol output, describing the timing as particularly difficult given existing pressure on global energy markets. He urged the public to avoid panic buying, stressing that motorists should purchase only the fuel they need.

The refinery is capable of processing up to 120,000 barrels of oil per day and accounts for roughly 10 percent of Australia’s fuel production, according to company data. Together with another refinery in Brisbane, it supplies a significant share of the country’s domestic demand.

Officials said the fire damaged a section responsible for producing high-octane petrol. However, other parts of the facility, including those used for jet fuel and diesel, were protected after safety systems were activated to isolate the affected area.

Incident controller Mark McGuinness described the situation as intense, noting that what began as a small fire quickly escalated into multiple explosions fueled by highly flammable gases and liquid hydrocarbons.

Viva Energy chief executive Scott Wyatt said the company’s immediate focus is on ensuring the safety of workers and stabilising the site. He added that restoring production would come later.

The disruption comes at a time when Australia’s fuel security is already under strain. The country relies heavily on imported oil and holds reserves equivalent to around 38 days of petrol consumption, well below the 90-day benchmark set by international standards.

Authorities have warned that supply challenges could worsen due to ongoing geopolitical tensions affecting global shipping routes, particularly in the Middle East. Reduced traffic through critical waterways has added pressure to fuel markets across the Asia-Pacific region.

While the government has not introduced rationing measures, officials continue to encourage conservation and the use of public transport where possible.