A major fire at one of Australia's two oil refineries has been extinguished, but the damage has deepened fears over the nation's petrol supplies amid a global fuel crunch.
Emergency crews rushed to Viva's Corio oil refinery in Geelong, southwest of Melbourne, just before midnight on Wednesday, after reports of explosions and flames. The blaze was put out on Thursday after burning for 13 hours. Fortunately, no one was injured, with dozens of workers on site evacuated safely.
The refinery, which produces 50% of Victoria's fuel and 10% of the nation's, is still partially operational, but the government has warned of impacts to petrol production. Energy Minister Chris Bowen said the fire was not great timing, as Australia's fuel supplies have been under pressure since the outbreak of war in Iran, adding to a global oil crisis. The price of diesel in Australia has doubled in recent weeks, leading to fuel shortages and even panic buying, while airlines are reducing services due to rising costs of jet fuel.
Bowen expressed concerns about the implications of the fire. This is not a positive development, but obviously there's a long way to go in terms of working out just what the impact is, he remarked on Nine's Today show.
The cause of the fire has been attributed to equipment failure, with Fire Rescue Victoria announcing that an investigation is ongoing. The refinery processes about 120,000 barrels of oil per day and employs over 1,100 people.
Viva Energy CEO Scott Wyatt confirmed that two petrol production units were affected by the fire, although others remained undamaged. He noted that petrol and jet fuel would be produced at reduced levels as a safety precaution and that operations would only ramp back up once it was deemed safe to do so.
Despite the immediate disruptions, experts suggest Australia's reliance on imported refined fuels provides some buffer against short-term shortages. This diversified supply chain provides a degree of resilience against short-term domestic disruptions, commented Professor Yuan Chen from the University of Sydney. However, Swinburne University’s Hussein Dia cautioned that while fuel would not run out immediately, the situation narrows the buffer to absorb shocks in supply.
Geelong Mayor Stretch Kontelj described the fire as unprecedented, stressing that management at the refinery is in shock after the event.
Emergency crews rushed to Viva's Corio oil refinery in Geelong, southwest of Melbourne, just before midnight on Wednesday, after reports of explosions and flames. The blaze was put out on Thursday after burning for 13 hours. Fortunately, no one was injured, with dozens of workers on site evacuated safely.
The refinery, which produces 50% of Victoria's fuel and 10% of the nation's, is still partially operational, but the government has warned of impacts to petrol production. Energy Minister Chris Bowen said the fire was not great timing, as Australia's fuel supplies have been under pressure since the outbreak of war in Iran, adding to a global oil crisis. The price of diesel in Australia has doubled in recent weeks, leading to fuel shortages and even panic buying, while airlines are reducing services due to rising costs of jet fuel.
Bowen expressed concerns about the implications of the fire. This is not a positive development, but obviously there's a long way to go in terms of working out just what the impact is, he remarked on Nine's Today show.
The cause of the fire has been attributed to equipment failure, with Fire Rescue Victoria announcing that an investigation is ongoing. The refinery processes about 120,000 barrels of oil per day and employs over 1,100 people.
Viva Energy CEO Scott Wyatt confirmed that two petrol production units were affected by the fire, although others remained undamaged. He noted that petrol and jet fuel would be produced at reduced levels as a safety precaution and that operations would only ramp back up once it was deemed safe to do so.
Despite the immediate disruptions, experts suggest Australia's reliance on imported refined fuels provides some buffer against short-term shortages. This diversified supply chain provides a degree of resilience against short-term domestic disruptions, commented Professor Yuan Chen from the University of Sydney. However, Swinburne University’s Hussein Dia cautioned that while fuel would not run out immediately, the situation narrows the buffer to absorb shocks in supply.
Geelong Mayor Stretch Kontelj described the fire as unprecedented, stressing that management at the refinery is in shock after the event.
