A late-night industrial fire at a key Australian refinery has raised fresh concerns about fuel supply, amid already strained global markets.

The incident occurred just before midnight on Wednesday at Viva Energy’s Corio refinery in Geelong, located about 47 miles southwest of Melbourne, and was brought under control on Thursday after burning for 13 hours.

Late-night fire triggers emergency response

Emergency crews rushed to the refinery after reports of explosions and visible flames. At the time of the incident, dozens of workers were on site, but all were safely evacuated. Authorities confirmed that no injuries were reported.

Fire Rescue Victoria later said the blaze was caused by “equipment failure,” and an investigation is now underway to determine the exact sequence of events. The refinery, one of only two in the country, processes around 120,000 barrels of oil per day and plays a crucial role in supplying fuel across the region.

Although the fire has been extinguished, parts of the facility remain affected, limiting full operations.

Production hit adds pressure to fuel supply

The Corio refinery produces about 50 percent of the fuel used in the state of Victoria and roughly 10 percent of Australia’s total fuel supply. Officials have warned that the disruption could affect petrol production in the near term.

Energy Minister Chris Bowen acknowledged the timing of the incident, saying it comes as Australia faces mounting pressure on fuel supplies linked to global instability.

“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,” Bowen stated on Nine’s Today show on Thursday. “This is very early days.”

Fuel prices have already been climbing. Diesel prices in Australia have doubled in recent weeks, and some stations have reported shortages amid panic buying. Airlines are also scaling back certain services as jet fuel becomes more expensive.

Refinery operations scaled back for safety

Viva Energy chief executive Scott Wyatt said the fire impacted two petrol production units, while other parts of the refinery remained intact. However, output has been reduced across several fuel types as a precaution.

“But naturally petrol will be one of the products that are potentially impacted,” Wyatt said.

Jet fuel and diesel production have also been temporarily scaled down. Wyatt emphasized that safety remains the top priority before any return to full capacity.

“We’ll only start increasing production again once we’re confident we can do that safely,” he added.

The refinery employs more than 1,100 people and is considered a vital part of Australia’s domestic fuel infrastructure.

Experts say supply chain offers some buffer

Despite the disruption, experts believe Australia’s reliance on imported refined fuels could help limit the immediate impact. The country sources a large portion of its fuel from international suppliers, including Singapore, South Korea, and Malaysia.

“This diversified supply chain provides a degree of resilience against short-term domestic disruptions,” said University of Sydney Professor Yuan Chen.

However, analysts caution that the margin for error is shrinking.

“[It] doesn’t mean people will run out of fuel tomorrow, but it does narrow the buffer we have to absorb shocks,” said Hussein Dia from Swinburne University of Technology.

Local officials described the incident as highly unusual. Geelong Mayor Stretch Kontelj called the fire “unprecedented,” noting its impact on both the facility and the community.

“I’ve spoken to management there this morning and needless to say, this has been a huge shock and has rocked them,” he said, as reported by ABC News.

As investigations continue and repairs begin, authorities are closely monitoring supply levels and market reactions in the days ahead.

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