Australia rules out fuel restrictions after fire at its largest refinery

SYDNEY – Australian Prime Minister Anthony Albanese said on April 17 that a fire at the larger of the country’s two oil refineries would not trigger any fuel restrictions, as the government ramps up efforts to secure fuel supplies due to the war on Iran.

The blaze at Viva Energy’s refinery in Geelong, an hour’s drive from Melbourne, comes at a bad time for Australia, which imports 80 per cent of its fuel needs and has been racing to lock in additional supply from regional allies.

The 120,000 barrel-per-day refinery is now operating at reduced rates, producing about 60 per cent of petrol output and 80 per cent of diesel and aviation fuel after the fire hit two of its petrol processing units, Mr Albanese said after meeting company officials on site.

The refinery supplies more than half the fuel used in Victoria, Australia’s second-most populous state, and around a tenth of national demand.

“The event here will not lead to any change,” Mr Albanese told reporters, when asked whether the fire would force a shift in the government’s four-stage fuel security plan, which includes measures that would limit fuel use if shortages worsen.

“The government has put in place the four stages in order to plan and prepare for circumstances which are predominantly impacted by global events, not by events here,” he said.

Australia is now at stage two of the plan, which urges motorists to buy only the fuel they need while the government takes precautionary steps to boost fuel supply.

Mr Albanese also said energy company BP had agreed to join a government-backed scheme, through its export credit agency, under which Canberra underwrites spot market fuel purchases to secure extra fuel.

Viva Energy chief executive Scott Wyatt said work remained to restore the refinery units safely and return to full production.

Mr Wyatt added that the 72-year-old refinery underwent major maintenance in 2025 and said the company had not attempted to raise capacity beyond safe operating limits, as an investigation into the cause of the fire continues.

The fire broke out at night on April 15 and was brought under control after about 12 hours.

Mr Albanese returned early from Malaysia overnight after meeting Prime Minister Anwar Ibrahim and securing a deal with Malaysian state energy company Petronas to supply excess fuel to Australia.

Malaysia was Mr Albanese’s third South-east Asia stop in the past week, following visits to Singapore and Brunei, as Canberra looks to strengthen food and energy supplies. REUTERS