Already grappling with skyrocketing fuel prices spurred by the ongoing Iran war, Australian motorists are now facing fresh fears of further cost hikes after a destructive fire broke out at one of the nation’s only two operating oil refineries.
Emergency response teams were dispatched to Viva Energy’s Corio refinery, located in Geelong roughly 75 kilometers southwest of Melbourne, in the late hours of Wednesday. Calls came in just before midnight reporting multiple explosions followed by large flames breaking out at the site. Firefighters worked tirelessly through the night and into the next day, finally containing and extinguishing the blaze 13 hours after it first ignited.
According to local rescue authorities, the incident has been confirmed to stem from unexpected equipment failure at the facility. The Corio refinery plays an outsize role in Australia’s domestic fuel supply chain: it accounts for half of all fuel production for the state of Victoria, the country’s second-most populous state, and 10 percent of total national fuel output. While the site remains partially operational following the fire, federal and state officials have issued clear warnings that the incident will almost certainly disrupt domestic petrol production in the coming weeks.
Industry analysts note that the timing of this disruption could not be worse. Australian fuel prices have already climbed steeply in recent weeks following the escalation of conflict in Iran, which has roiled global crude oil markets and pushed up input costs for refiners. With domestic supply already strained by the market shocks from the war, the partial shutdown of a key refinery creates additional supply tightness that is likely to pass through to consumers at the gas pump. BBC correspondent Simon Atkinson reports from Melbourne that industry groups are already bracing for noticeable price increases in the short term, with Victorian motorists expected to see the most immediate impact.