Petrol Output at Geelong Refinery Falls to 60 Percent After Fire: PM

Prime Minister Anthony Albanese says petrol production at the Viva Energy oil refinery has been reduced to 60 percent of capacity following the major fire that engulfed part of it on April 15 and 16.

Albanese was in Geelong to visit the refinery and tried to reassure Australians that the incident would “not lead to any change.”

“We’ll give an update tomorrow about fuel supplies that are on hand,” he said. “Fuel is continuing to come in.”

The Geelong refinery supplies 50 percent of Victoria’s fuel needs, 10 percent of Australia’s and also produces jet fuel.

“The advice … today is that 80 percent of diesel production is continuing, 80 percent of aviation fuel is ongoing,” Albanese.

“But 60 percent of petrol production is proceeding today as well. We hope, of course, as does the company, that ramps up over the coming period as well.”

Fuel supply chains have come under scrutiny amid the Iran War, which has seen refined fuel imports skyrocket in price to about $3.00 per litre—before temporary government tax cuts helped lower them.

In 2000, Australia had eight refineries that provided the nation’s needs, but most have been closed down in favour of importing cheaper alternatives from Singapore, South Korea, and China.

No Increase to National Fuel Restrictions

To cope with the current fuel strain, the National Cabinet approved a four stage plan to ensure the country can continue to operate.

Australia remains on a level 2 of the plan, where Australians are urged to only buy the fuel they need and to voluntarily make an effort to avoid fuel use where possible.

The first level involves normal use without concern, while the third level could involve the government limiting fuel use, and the fourth would effectively involve a level of rationing.

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

“The event here will not lead to any change—we will give an update tomorrow about fuel supplies that are on hand.

“The fact that 60 percent of petrol production is continuing is actually very positive, given the circumstances people have seen … we all saw the visuals of what was a serious fire.”

Speaking to TV program Sunrise, Deputy Prime Minister Richard Marles said he wouldn’t describe what happened at the Viva facility as a “disaster.”

“I mean certainly the timing of this incident is terrible and it’s a significant incident, I’m not seeking to play that down,” he said.

“But I was speaking with Scott Wyatt … the CEO of Viva.

“The company is actually relatively optimistic that the impact on fuel supply will be minimal, and that’s really because of the part of the refinery which was most impacted was that which refines petrol, which is the fuel source that’s under or the fuel type—rather, that’s under least pressure.”

Marles said diesel and jet fuel were the least affected by the fire.

“So, as I say, the company is actually pretty hopeful that the impact on this on its output will be relatively minimal,” he said.

“I think what we can be, you know, really thankful for is that no one was hurt or injured in this.

“It happened at 11.15 at night. I think that’s a blessing that there weren’t more people around. So as a local community we’re very thankful for that.”

Nationals Leader Calls for Local Focus

Meanwhile, Nationals Leader Matt Canavan has focused the conversation on the need to build Australia’s self-sufficiency.

“An Australian businessman wants to build a diesel refinery at Gladstone,” he said on X. “He has the land and the backing of the Queensland government.

“For the national interest, the Labor government needs to back this 100 percent and not just with words.”

Canavan said Australia has more resources per person than any country in the world except Saudi Arabia.

“If it is good enough for us to be financing the importation of foreign oil we should also be backing the production of domestic oil,” he said.

“And our banks need to roll out the red carpet too.

“They bend over backwards to finance renewables but here is their chance to show that they really care about Australia’s national security.”