Australia's PM: Major Refinery Fire Won't Hurt Fuel Supplies

Written by Martin Lynch, European News Editor for IIR News Intelligence (Sugar Land, Texas)

Summary

Australia's Prime Minister Anthony Albanese has said a major fire at the critical Corio refinery will not result in fuel shortages as the country struggles to secure supplies due to the war in Iran. 

No Rationing

A major fire at one of only two Australian refineries will not result in fuel rationing, according to the country's Prime Minister Anthony Albanese. 

The comments were made after an unprecedented fire broke out in recent days at Vivo Energy's Corio refinery in Geelong. Fire crews and emergency services were dispatched to the 120,000-barrel-per-day (bpd) refinery southwest of Melbourne after reports of explosions and flames. The fire burned for 13 hours. The refinery produces 50% of the state of Victoria's fuel and 10% of the nation's, and shortages of petrol were expected. Speaking to the media, Albanese urged calm: "The advice... today is that 80% of diesel production is continuing, 80% of aviation fuel is ongoing. But 60% of petrol production is proceeding today as well. We hope, of course, as does the company, that it ramps up over the coming period." According to Industrial Info Resources data, there are nine active projects at the refinery worth more than US$120 million in investment. Subscribers to Industrial Info Resources' Global Market Intelligence (GMI) Refining Project Database can click here for the reports. 

Australia, like many other countries, is experiencing lower fuel supplies and higher prices due to the ongoing war in Iran and the shutdown of the Strait of Hormuz. The country recently agreed on a four-level fuel security plan and now sits at Level 2, but the government said that the Corio fire would not require moving to Level 3, which would include rationing of fuel. "We'll consider the international supply chain environment, we'll consider the situation in the Strait of Hormuz, [and] we will consider this, but this - in and of itself - does not lead to a decision to change levels," Federal Energy Minister Chris Bowen told reporters at a press conference. "This is not a positive development, this is not good timing, and this is a setback, but I can assure Australians [that] the government and industry are working very closely together to manage the impacts of this fire and to ensure ongoing fuel security for Australians."

How it Happened

Viva Energy confirmed this week that the "significant fire" in the gasoline complex broke out in the alkylation unit. "Most major processing units are unaffected by the fire," the company stated in the latest update. "The Company has sufficient fuel stocks to cover this reduced production and expects to maintain normal fuel supply following this incident. Over the next few weeks, and subject to plant inspection, the Company expects to be in a position to lift production of diesel, jet fuel and petrol to over 90% of capacity. The whole Viva Energy team understands how important our refinery is to the energy security of the country, especially at the current time. We will progressively restore production once we are confident that it is safe to do so, and do not expect any disruptions to fuel availability or price increases for Viva Energy's customers as a result of this incident."

Australia's Import Dependance

Australia is particularly exposed to the current global supply problem, relying on imports of refined fuels for more than 80% of its needs - equivalent to roughly 850,000 bpd in 2025, mainly from Asia. The 120,000-bpd Geelong refinery in Victoria and Ampol's 109,000-bpd Lytton refinery in Brisbane, Queensland, are the country's only refineries. Both produce a combined 12 billion liters of petrol, diesel and jet fuel - about 20% of Australia's annual demand. 

Improved Refinery Support

Prior to fire, the government had confirmed that it was extending its subsidy for the country's last two refiners until 2030. The Fuel Security Services Payment (FSSP) programme was introduced in 2021 to provide payments to refiners when prices don't cover the costs of production. For additional information, see April 02, 2026, article - Australia Extends Support for Refineries to 2030. The Corio refinery manufactures petrol, diesel, liquefied petroleum gas, jet fuel, avgas and low aromatic fuel. It is also Australia's only manufacturer of hydrocarbon solvents, marine fuel oil, bitumen and high-quality plastic feedstock used to create food packaging, medical equipment and polymer banknotes.

Key Takeaways

• There will be no fuel rationing introduced after a major fire at one of only two Australian refineries, according to the country's Prime Minister Anthony Albanese. 
• The fire broke out in the gasoline complex of the 120,000-barrel-per-day (bpd) Corio refinery southwest of Melbourne.
• Australia relies on imports of refined fuels for more than 80% of its needs. 

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