Australia refinery fire worsens fuel supply crunch amid Iran war

SYDNEY, PERTH, A fire at the largest of Australia's two oil refineries has hit petrol production, company and government ‌officials said on Thursday, just as the nation faces pressure to shore up fuel security with the Iran war disrupting global supply.State fire authorities said the blaze, which broke out at a 120,000 barrels-per day refinery run by Viva Energy (VEA.AX), opens new tab on Wednesday night, had been brought "under control" at noon (0200 GMT) on Thursday.

The fire came at a bad time for Australia as it depends on imports ​for 80% of its fuel needs and has been racing to replace supply disrupted by the Middle East conflict, which has driven up energy ​prices worldwide.

"This is not a positive development, but obviously there's a long way to go in terms of working out just ⁠what the impact is," Energy Minister Chris Bowen told Channel Nine.Viva Energy's refinery supplies over half of the fuel in Australia's second most populous state, Victoria, and ​a tenth of the country's total demand.

The company said it expects output of petrol and aviation gasoline will be affected, but it will meet fuel demand through imports. 

Australia used to have 8 refineries.
Now they are down to only 2 active refineries.

One of those just caught on fire with massive damage.

Australia is already having a massive diesel and gasoline shortage. Australia imports most of it's diesel and gasoline from Singapore,… pic.twitter.com/Ih4b1wXibm

— Wall Street Mav (@WallStreetMav)April 16, 2026

One of those just caught on fire with massive damage.

Australia is already having a massive diesel and gasoline shortage. Australia imports most of it's diesel and gasoline from Singapore, South Korea, and Malaysia. However those refineries are not receiving enough oil from the Middle East, so they lack enough gasoline and diesel to export to Australia.