A significant fire at Viva Energy’s Geelong oil refinery has raised concerns about potential fuel shortages and price spikes in Victoria, with analysts comparing the disruption to a ‘mini Strait of Hormuz closure’ for the state’s fuel supply chain.
The blaze, which broke out early Wednesday morning, forced the temporary shutdown of key refining units at the facility responsible for producing approximately 50% of Victoria’s petrol and diesel. Emergency services contained the fire within hours, but damage assessments are ongoing.
‘This is Victoria’s most critical fuel infrastructure,’ said an energy analyst familiar with the situation who requested anonymity. ‘Even a short-term disruption could ripple through the market given existing tight supplies.’
The Geelong refinery processes 120,000 barrels of crude oil daily and supplies most major service stations across the state. Industry sources suggest fuel reserves could cushion immediate impacts, but prolonged downtime might require increased imports.
Market watchers note the incident comes amid global oil price volatility and seasonal demand increases. ‘We’re already seeing wholesale price movements in response,’ a commodities trader told SourceRated. ‘The question is whether this becomes a days-long or weeks-long event.’
Transport industry groups have urged calm, with one spokesperson stating: ‘There’s no need for panic buying – the supply chain has contingencies for these situations.’ However, economists warn any sustained production issues could add 5-10 cents per liter at the pump within days.