Major refinery fire won’t lead to fuel rationing, Australian PM says

A key Australian oil refinery experienced a sharp reduction in fuel output following a large fire, yet the nation’s leader has assured the public that stricter measures will not be imposed. The Viva Corio refinery, situated near Geelong, is one of just two facilities in the country, which has been affected by a global oil supply shortage linked to the Iran conflict. It usually generates around 50% of the state’s fuel and 10% of the country’s total production.

The blaze, triggered by equipment malfunction, started shortly before midnight on Wednesday and lasted for 13 hours. While the government has cautioned that the damage might influence fuel prices and reserves, it has called for public reassurance. “The advice today indicates that 80% of diesel production is still active, 80% of aviation fuel continues, and 60% of petrol output is ongoing,” stated Prime Minister Anthony Albanese. “We anticipate this level will increase in the coming days,” he added.

Fuel security plan remains at stage two

Australia is currently operating at level two of a four-tier fuel security framework, established by federal, state, and territory leaders last month. Albanese emphasized that the fire would not prompt a shift to level three, which involves implementing practical fuel-use limits or rationing. The prime minister cut his overseas trip to Southeast Asia short to inspect the refinery on Friday, aiming to reinforce oil supply stability.

Despite relying heavily on imported refined fuels, Albanese reported securing an additional 100 million liters of diesel from Brunei and South Korea. Addressing the media, he reiterated his belief that Australia should expand its domestic refinery capacity to reduce dependence on foreign sources.

“We hope, as does the company, that production will rise over the coming period,” Albanese said.