Geelong Refinery Fire: Australia Is Now Down to One Working Refinery
A major fire at Viva Energy's Geelong refinery has knocked out 50% of Victoria's fuel production. With only one refinery left running, Australia's fuel vulnerability has never been more exposed.
What Happened
At approximately 11pm on Tuesday 15 April 2026, a fire broke out at the Viva Energy oil refinery in Corio, Geelong. Multiple explosions were reported. Fire Rescue Victoria responded within minutes and battled the blaze through the night before bringing it under control by midday Wednesday.
The cause has been identified as a **small leak following valve failures** in mechanical equipment. The leak allowed fuel or gas to escape, which ignited and quickly escalated.
All refinery staff have been accounted for, with no injuries reported. However, the fire sent toxic smoke across the Corio area, prompting health warnings for nearby residents.
Viva Energy CEO Scott Wyatt confirmed that the fire hit the refinery's **motor gasoline production unit** — the mogas plant. Petrol production has been directly impacted. Aviation gasoline output may also be affected, and diesel and jet fuel production has been reduced to minimum rates as a precaution.
Why This Refinery Matters So Much
The Geelong refinery isn't just any industrial facility. It is one of only **two operational oil refineries** left in the entire country.
Here's what it produces:
| Metric | Figure | |---|---| | Refining capacity | ~120,000 barrels/day | | Share of Victoria's fuel | ~50% | | Share of Australia's fuel | ~10% | | Employees | 1,100+ | | Fuel types produced | Petrol, diesel, jet fuel, aviation gasoline |
The only other refinery is **Ampol's Lytton facility** in Brisbane, Queensland. Between them, these two plants supply roughly **20% of Australia's total fuel needs**. The other 80% is imported — mostly from refineries in Singapore, South Korea and Malaysia.
With Geelong's petrol production now offline, Australia is temporarily relying on a **single refinery** plus imports to fuel the entire country.
How Did We Get Here? Six Refineries Gone in 14 Years
Australia didn't always run on two refineries. As recently as 2012, the country had **seven** operational refineries. Since then, five have closed:
| Refinery | Location | Closed | Current Use | |---|---|---|---| | Clyde | Sydney, NSW | 2012 | Fuel import terminal | | Bulwer Island | Brisbane, QLD | 2015 | Fuel import terminal | | Kurnell | Sydney, NSW | 2014 | Fuel import terminal | | Port Stanvac | Adelaide, SA | 2003 (decommissioned 2013) | Demolished | | Kwinana | Perth, WA | 2021 | Converting to import terminal |
Every single one was converted into a fuel **import terminal** — the physical infrastructure of refining replaced by tanks that receive finished fuel from overseas. The closures were driven by weak refining margins, high operating costs, and competition from mega-refineries across Asia that could process crude far more cheaply.
At the time, each closure was presented as a rational economic decision. Imported fuel was cheaper. Global supply chains were reliable. Why refine domestically when Singapore could do it for less?
The answer, it turns out, is: because supply chains break.
The Timing Could Not Be Worse
The Geelong fire has landed in the middle of Australia's worst fuel crisis in modern history.
The timeline of compounding failures:
- **Late February 2026:** The US-Israel military campaign against Iran escalates. Iran effectively closes the **Strait of Hormuz**, through which roughly 20% of the world's oil supply normally flows. - **March 2026:** Global oil prices surge past US$100/barrel. Australian fuel prices climb from $1.80/L towards $2.50/L. Diesel shortages hit regional areas. Hundreds of service stations run dry. - **30 March:** National Cabinet halves the fuel excise from 52.6c/L to **26.3c/L** for three months. - **1 April:** Excise cut takes effect. Prices ease slightly to ~$2.31/L average for ULP. Diesel remains above $2.70/L. - **8 April:** Iran-US ceasefire announced — but shipping through the Strait remains far below normal. Insurers and tanker operators refuse to re-enter until the ceasefire proves durable. - **12 April:** The US announces a **blockade of Iranian ports**. Oil prices surge again — Brent crude back above US$102/barrel. - **15 April:** The Geelong refinery catches fire.
Australia was already running on roughly **38 days of petrol reserves** and **29 days of diesel**. The Geelong fire doesn't just remove domestic production — it increases pressure on import channels that are already strained.
:::warning Victorians and Tasmanians will be most directly affected by the Geelong shutdown. The refinery supplies half of Victoria's fuel. If repairs take weeks, expect tighter supply and potentially higher prices in Melbourne and regional Victoria. :::
The Billion-Dollar Question: Taxpayers Kept This Refinery Alive
Here's the part that stings. Australian taxpayers have been **paying to keep these refineries open**.
The Fuel Security Services Payment (FSSP), introduced in 2021, is a government subsidy that tops up refinery margins when they fall below profitable levels. In March 2026, the program was **extended to 2030** and the trigger thresholds were lowered, making it easier for Viva Energy and Ampol to claim payments.
Viva Energy has invested roughly **$500 million** in refinery and storage projects since the FSSP began. The government positioned this as a fuel security measure — keeping domestic refining alive so Australia isn't 100% dependent on imports.
But the fire raises uncomfortable questions. We're subsidising a refinery that is now offline. The very facility that taxpayer money was supposed to keep running as a strategic national asset has been knocked out by a valve failure at the worst possible moment.
To be clear: fires happen at industrial facilities. This isn't about blame. It's about the fragility of putting national fuel security on the shoulders of **two ageing plants** — one built in the 1950s, the other in the 1960s — and calling it a strategy.
What Happens Next for Fuel Prices
Energy Minister Chris Bowen has confirmed that fuel supply **may be impacted for some time**. Viva Energy CEO Scott Wyatt says the company is increasing fuel import orders to compensate, and he's "confident" overseas supply can fill the gap.
But confidence and reality don't always align during a global supply crunch. Here's the problem:
- Geelong's petrol production is **offline** with no confirmed restart date. - Diesel and jet fuel production is running at **minimum rates**. - Import channels from Asia are already under pressure from the Strait of Hormuz disruption. - The ceasefire is fragile, and the US port blockade on Iran is keeping oil prices elevated. - Australia holds only **38 days of petrol** and **29 days of diesel** in reserves.
For Victorian motorists specifically, the near-term outlook is tighter supply and potentially higher prices — even with the excise cut in place. The refinery supplies half the state's fuel. That's not something you replace overnight with a few extra tanker shipments.
:::tip If you're in Victoria or Tasmania, it's worth keeping your tank above half for the next few weeks. Use [FuelCalc](/) to plan your trips efficiently and avoid unnecessary driving while supply recovers. Track your spending with the [Economy Tracker](/economy-tracker) to see exactly how the fire is affecting prices in your area. :::
The Bigger Problem Nobody Wants to Talk About
The Geelong fire is not the crisis. It's a symptom of the crisis.
Australia closed five of its seven refineries in just over a decade. It allowed itself to become **90% dependent on imported fuel** from a global supply chain that — as we've now seen — can be disrupted by a single military conflict thousands of kilometres away.
The International Energy Agency recommends member nations hold **90 days** of fuel reserves. Australia has never met this benchmark. At current levels, we hold roughly **34–38 days** of combined reserves.
One fire at one refinery shouldn't threaten a nation's fuel supply. But when you only have two refineries, and one of them catches fire during a global oil crisis, that's exactly what happens.
Queensland Premier David Crisafulli has been pushing for domestic oil exploration in the **Taroom Trough** — a potential new oil province that could begin production by 2028. It's a start. But it doesn't help today, and it doesn't replace the refining capacity we've already lost.
The question Australians should be asking isn't "when will Geelong come back online?" It's: **why did we let it get this fragile in the first place?**
:::info Want to stay on top of how fuel prices are moving in your area? Use [FuelCalc](/) to calculate trip costs at current prices, and follow our [blog](/blog) for ongoing crisis updates. :::
Tags: Geelong refinery, Viva Energy, refinery fire, fuel crisis, fuel supply, fuel security, petrol shortage, Victoria fuel, oil refinery, fuel prices 2026, Ampol Lytton, diesel shortage