Fuel production rebounds to 80% capacity within 48 hours

April 17, 2026 — 17:19

The fire-ravaged Geelong refinery is approaching full capacity production of jet fuel and diesel earlier than expected, restoring most of its output in less than 48 hours after the fire caused major production outages.

A fire sparked by an equipment failure late at night on Wednesday caused one of Australia’s two remaining oil refineries to drop to minimum production levels, deepening concerns about Australia’s ability to withstand global supply pressures caused by the ongoing war in the Middle East.

Efforts to extinguish fire at Geelong refinery.Paul Jeffers

However, the refinery’s owner, Viva Energy, said the facility made a rapid recovery and managed to restore the majority of its production capacity within 48 hours of the incident.

Although the fire dealt a serious blow to the refinery’s oil production units, oil production has already increased to 60 percent capacity. The production rate of diesel and jet fuel production units that were not affected by the fire has increased to 80 percent and is expected to reach full capacity within a few weeks.

The refinery, which can process up to 120,000 barrels of oil per day and convert it into millions of liters of fuel, has returned to 80 percent capacity in total.

“Many units are unaffected and are still in production, so we are still able to source 80 percent of our fuel supply from this facility,” Viva CEO Scott Wyatt said. “As we do [the site] “We hope to be able to ensure safety and restore more production.”

Viva Energy is one of Australia’s largest fuel companies, typically supplying 30 per cent of the country’s petrol, diesel and jet fuel from its Geelong refinery and extensive network of import terminals along the coastline. Wyatt said any decline in Geelong’s refinery output could be offset by increasing imports from overseas suppliers.

“I expect there will be no impact on the products we supply to the Victorian market as a result of this incident,” he said.

The recovery comes at a sensitive time for energy security in Australia and globally. Global oil and fuel supplies are under significant pressure due to the ongoing conflict in Iran, which is blocking oil shipments from the Middle East and raising sensitivities over Australia’s limited capacity to produce its own fuel following a wave of refinery closures over the last decade. The country currently relies on imports for more than 80 percent of its fuel needs.

Prime Minister Anthony Albanese, who returned home early from Malaysia to visit the refinery on Thursday night, said the fire was “regrettable, especially considering the timing in which it occurred”.

“The conflict in the Middle East directly affects our region and the entire global economy,” Albanese said. “Our job is to do the best we can to limit the impact this will have, and that’s exactly what we do every day.”

However, Albanese praised Viva Energy’s response to the emergency and its ongoing supply assurances. He dismissed warnings from some energy analysts that the refinery fire increased the risk of the government having to move to the next phase of its fuel-saving strategy; This phase may include directing fuel to priority areas, encouraging voluntary measures such as carpooling or working from home, and further releasing strategic reserves.

“This incident here will not lead to any change,” Albanese said.

The longer the conflict in the Middle East drags on, the greater the risk of fuel shortages reaching Australia, especially if Asian refineries that supply the bulk of Australia’s imports begin to run low on crude oil and cut production. But the federal government and the fuel industry are increasingly confident that supply will remain stable. As importers diversify their supply chains to source fuel from other parts of the world, the Albanian government is in bilateral talks with its Asian neighbors to support future deliveries.

Malcolm Roberts, chief executive of the Australian Petroleum Institute, which represents Ampol, BP, Mobil and Viva Energy, said the fuel industry and government were “doing a good job of maintaining supply to the country”.

He said Viva Energy was particularly well positioned to increase imports if necessary, given that it could leverage its partnership with trading partner Vitol, one of the world’s largest oil traders.