A significant fire at one of Australia’s last remaining oil refineries has raised concerns about fuel supply and operational resilience across the country.

The incident took place at the Viva Energy refinery in Geelong, located around 70 kilometres from Melbourne. Emergency services responded late in the evening following reports of explosions and visible flames. The fire burned for approximately 13 hours before being brought under control.  No injuries were reported, and workers on site were safely evacuated.

The Geelong refinery plays a major role in Australia’s fuel network. It supplies more than half of the fuel used in the state of Victoria and contributes around 10 percent of the country’s overall fuel production.

With the capacity to process up to 120,000 barrels of oil per day, any disruption to operations can have wider implications for supply stability.

Early reports indicate that the fire impacted petrol production units, while diesel and jet fuel continued to be produced at reduced levels as a precaution.

Authorities have confirmed that the fire was linked to a gas leak from a mechanical component within the system. The gas is believed to have ignited, though a full investigation is now underway to determine the exact sequence of events.
Officials have stated there was no immediate risk to the public, although nearby residents were advised to keep windows closed as a precaution during the incident.

While the refinery remains partially operational, there are concerns about the potential impact on petrol production in the short term. The timing of the incident adds further pressure, with global fuel markets already under strain. Rising costs and supply challenges have been reported in recent weeks, with some sectors experiencing increased prices and tighter availability.

Experts note that Australia’s reliance on imported refined fuels provides a level of resilience. Supplies from international partners such as Singapore, South Korea and Malaysia may help offset short-term disruption. However, incidents like this highlight how quickly the margin for disruption can narrow.

Beyond the immediate supply concerns, the fire highlights the importance of maintenance, inspection, and safety systems in high-risk industrial environments. Equipment failure, particularly in complex processing systems, can escalate rapidly if not identified and managed effectively.

For safety and operations professionals, the incident serves as a reminder of the need for:

• Robust asset management and maintenance programmes
• Early detection of mechanical faults and leaks
• Strong emergency response planning
• Continuous review of safety-critical systems

The full extent of the damage and the timeline for returning to full production are still being assessed. Authorities and the refinery operator will continue investigations in the coming days.  In the meantime, the focus remains on restoring safe operations while monitoring any wider impact on fuel supply and pricing.

Incidents like this underline the critical role of safety, reliability, and preparedness in essential infrastructure. Even a single event can have far-reaching effects, both operationally and economically.

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