Geelong Refinery Fire: Petrol Prices Surge, Shortages Unlikely

Geelong Refinery Fire: Petrol Prices Surge, Short-Term Outages Expected

A major fire at Viva Energys Geelong refinery has led to a significant increase in petrol prices, with some stations seeing a jump of up to 20 cents per litre. This refinery is one of only two in Australia that converts crude oil into fuel, reducing the need for imports from Asia. While short-term outages are anticipated at some stations, no nationwide shortages are expected. The refinery produces petrol, diesel, jet fuel, and specialty products, primarily for local distribution and major customers like airlines. The incident comes amidst already high global oil prices due to Middle East tensions. Energy Minister Chris Bowen confirmed that the refinery is still operating at reduced capacity, primarily producing diesel and jet fuel, with petrol production being the most affected. Economists suggest potential government interventions, such as releasing minimum fuel stocks to stabilize prices, similar to what was done in March. Incoming crude shipments from the US, Argentina, and Algeria may be rerouted if processing is halted. Viva Energys shares were temporarily suspended pending damage assessments, but analysts predict a swift recovery for Victoria without causing a nationwide downturn.

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