Australia's leading fuel refiner and retailer Viva Energy said on Monday that fuel production at its Geelong refinery will remain constrained for at least six weeks following a fire in April, tightening supplies as global markets face disruption from the Middle East conflict.

The April 15 fire at Viva Energy's refinery in the city of Geelong, 65 km southwest of Melbourne, damaged key processing units, including the residue catalytic cracking unit (RCCU), which is not expected to resume operations until June, according to the company's update to investors.

Petrol output has fallen to about 60 percent of capacity, while diesel and jet fuel production are running at roughly 80 percent, according to Viva Energy.

The Geelong refinery is one of only two remaining in Australia, increasing the country's reliance on imported refined fuels, mainly from Asia. Supply chains are already under pressure due to shipping disruptions linked to conflict affecting the Strait of Hormuz, a critical global oil transit route.

"The company continues to have sufficient fuel stocks to cover this reduced production and expects to maintain normal fuel supply," Viva Energy said, adding it is prioritizing repairs to damaged units, including the alkylation unit, and reported no major impediments to restarting the RCCU.

The company expects production to recover to above 90 percent once repairs are completed, though timelines remain subject to further inspection. 

News.Az 

By Faig Mahmudov