A major fire at Viva Energy’s Corio refinery near Geelong has raised fresh concerns about fuel supply across Australia, with Federal Energy Minister Chris Bowen warning petrol production could be affected “for some time”. The blaze broke out late on Wednesday night at the refinery’s motor gasoline unit, with no injuries reported. Diesel and jet fuel production has continued at reduced levels while safety assessments continue.
The Geelong plant is one of only two operating refineries left in Australia, and its disruption matters well beyond Victoria. ABC reporting says the Geelong and Lytton refineries together provide about 20 per cent of Australia’s fuel, while Viva says Geelong alone supplies around 50 per cent of Victoria’s fuel and is an important part of national energy security.
That could eventually flow through to motorists’ wallets. Analysts told the ABC the fire may force the government and suppliers to secure extra imported fuel at higher prices, increasing pressure on the national market just as Australia is already dealing with fuel disruptions linked to conflict in the Middle East. Earlier this month, the federal government announced it would underwrite spot fuel purchases by Viva Energy and Ampol to help bring in extra supply during the broader fuel squeeze.
For South Australia, the issue is more than just a Victorian problem. ExxonMobil says its Birkenhead terminal at Port Adelaide stores and distributes petrol, diesel and aviation fuel for the South Australian market, and that Viva Energy ships its own refined products into the terminal. That means any prolonged hit to Viva’s refining output in Geelong has the potential to ripple into South Australia’s supply chain as well.
At this stage, there is no confirmed fuel shortage in South Australia. The SA Government’s fuel security website says fuel is still arriving in the quantities the state needs and expects, but warns high demand and changed buying habits are already causing some supply disruptions. In other words, South Australia is not out of fuel — but any further strain on national supply could make local conditions tighter.
Whether Adelaide drivers see an immediate jump at the bowser is still unclear, but the risk is real if the Geelong outage drags on. The ACCC said on 10 April that average petrol prices had largely reflected the temporary fuel excise cut, so a refinery disruption now could start to eat into some of that relief if wholesalers have to rely more heavily on dearer imported fuel.
For now, the message for South Australians is to watch the situation closely rather than panic buy. The refinery remains a key part of Australia’s fuel system, and while the state’s supply is still flowing, a prolonged outage at Geelong could put upward pressure on petrol prices in Adelaide and across South Australia in the days or weeks ahead.
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