Fuel crisis heats up as one of Australia's two oil refineries catches fire

UPDATED 16/04/2026 1:00pm: Fire Rescue Victoria has confirmed the fire was extinguished at 12:11pm, though fire crews will remain in attendance.

Commissioner Michelle Cowling told ABC Radio Melbourne the fire was the result of an "equipment failure" and was contained to a part of the plant known as the transfer. It's unclear yet what impact this will have on production.

An out-of-control fire at one of Australia’s two remaining oil refineries overnight is set to affect the supply of petrol and diesel.

Just after 11:00pm on Wednesday night, a fire broke out at the Viva Energy facility in the Geelong suburb of Corio, an hour south-west of Melbourne – with authorities confirming the blaze has yet to be brought under control. No injuries have been reported.

A spokesperson for the Australian Workers’ Union said the fire began in the jet fuel production area, but explained the supply of oil is interconnected with petrol and diesel manufacturing at the refinery.

It’s understood the oil refinery processes up to 120,000 barrels of oil daily, supplying more than 50 per cent of petrol, diesel, jet fuel, and LPG to Victoria.

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“At this point, production of jet fuel and diesel is continuing at the refinery at reduced levels for safety reasons as a precaution,” federal energy minister Chris Bowen told Channel Nine’s Today program.

“At this point, the impact is mainly on petrol production, but obviously, this is very early days.”

The exact impact on the state’s fuel supply is unknown at this stage, and it’s not yet clear how long it will take for repairs to be made.

The incident couldn’t have come at a worse time, with CarExpert reporting last month that Australia’s other oil refinery, located in Brisbane, is set to shut down for six weeks due to planned maintenance by owner Ampol – beginning in August 2026.

“The important role Australian refineries play in supporting the resilience of our domestic fuel supply is being reinforced in the current global oil market environment,” Ampol’s managing director and CEO, Matt Halliday, said at the time.

Fire Rescue Victoria says the blaze at the Corio plant has been contained to an area measuring around 30 by 30 metres, with 50 appliances currently fighting flames of up to 60 metres, The Age reports.

With sensors having been damaged in the fire, it’s not known how much fuel is left to keep feeding the fire. The cause also remains unknown at this time.

While there is no threat to the public, a smoke warning has been issued for Geelong residents.

As of Monday (April 13), Mr Bowen reported Australia had approximately 38 days' worth of petrol in reserve, 31 days of diesel, and 28 days of jet fuel.

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