Fire Hits Geelong Refinery, One of Australia's Last Two Fuel Plants

Updated on April 20, 2026

A structural fire broke out at the Viva Energy Geelong Refinery in Corio, Victoria, at around 23h00 on April 15, 2026, triggering a large emergency response from Fire Rescue Victoria and raising immediate concerns about Australia's fuel security. By the morning of April 16, the blaze had been brought under control and authorities had begun a preliminary damage assessment. Viva Energy requested a trading halt on the ASX pending a formal announcement on the operational impact, and issued an initial statement confirming the fire in the Gasoline complex, the absence of injuries, and the continued operation of the facility at reduced production rates. Shares resumed trading on Monday April 20 and fell as much as 9.5 percent in early Sydney trading to their lowest level since March 19, closing the gap that had opened between the last pre-fire close at 2.53 dollars and investor expectations of prolonged disruption.

According to Fire Rescue Victoria assistant chief fire officer Michael McGuinness, the fire was contained to an area of roughly 30 metres by 30 metres within the plant. Around 50 firefighters and 10 vehicles, including a firefighting boat deployed in Corio Bay, were mobilised to cool surrounding infrastructure and prevent the blaze from spreading to nearby flammable liquids and gases. Remotely operated fixed monitors allowed crews to attack the flames from a safer distance. Isolation valves were activated early in the response to cut fuel flow to the affected section. No injuries were reported, and workers in the affected area were evacuated safely once a gas leak was detected moments before the initial explosion. All personnel on site at the time of the incident have been accounted for.

Fire Rescue Victoria deputy commissioner Michelle Cowling confirmed that the fire was caused by an equipment failure inside the refinery. The leak involved liquid hydrocarbons and gases that fed the fire, and several explosions were heard by residents during the early hours. A full internal investigation by Viva Energy is now underway to establish the precise sequence of events. Viva Energy chief executive Scott Wyatt and downstream executive Thys Heyns both stated that the incident is not linked to the age of the facility and is not related to recently deferred maintenance, which had been pushed back to maximise diesel production in response to tight global supply. Viva has notified its insurers and confirmed it carries coverage for both property damage and business interruption.

Alkylation Unit identified as the source of the blaze

In its April 20 update to the ASX, Viva Energy clarified that the incident was confined to the Alkylation Unit within the Gasoline complex, rather than the motor gasoline reformer section initially discussed by industry observers. The alkylation unit produces high octane blendstock for petrol and aviation gasoline by combining light olefins with isobutane. Major processing units including the crude distillation unit and the reformer are unaffected. The Residue Catalytic Cracking Unit, or RCCU, is temporarily offline as part of stabilisation efforts and will need to be restarted before full gasoline output can resume.

Revised short term production levels and path back to 90 percent

Viva Energy now expects the Geelong Refinery to produce diesel and jet fuel at approximately 80 percent of capacity and petrol at approximately 60 percent of capacity in the short term. Viva said its Geelong refinery will boost diesel, jet fuel and gasoline production to about 90 percent of capacity over the next few weeks after the major fire forced it to cut output, subject to plant inspection and the restart of the RCCU. The refinery is then expected to continue production at those levels until repairs on the Alkylation Unit are completed. An assessment of damage, repair scope, duration and financial impact to return to fully optimised production began the week of April 20.

The refinery, which normally operates at full capacity and processes up to 120,000 barrels of crude oil per day, is therefore moving from minimum rates toward a sustained intermediate plateau rather than a rapid return to full throughput. Viva Energy indicated that throughput will only be lifted once the site is confirmed safe and the damaged unit has been fully isolated and assessed. The company stated it has sufficient fuel stocks on hand to cover the reduced production and expects to maintain normal fuel supply to customers.

The Geelong Refinery supplies approximately 50 percent of Victoria's fuel demand and about 10 percent of Australia's total fuel consumption. It manufactures petrol, diesel, jet fuel, LPG, avgas, marine fuel oil, bitumen, and hydrocarbon solvents. It is also Australia's only domestic manufacturer of Special Antarctic Blend diesel used in polar operations and of Low Aromatic Fuel produced under a federal program. With the Lytton refinery in Brisbane being the only other active refining facility in the country, any extended reduction at Geelong forces Australia to lean more heavily on imported refined products. Two decades ago Australia operated eight refineries, and until the RCCU restart the Lytton plant effectively carries a larger share of domestic petrol supply.

Energy Minister Chris Bowen confirmed that the incident will affect national supply, with the most immediate impact on petrol. He emphasised that diesel and jet fuel output is continuing, albeit at reduced levels, and that the federal government is in close contact with Viva Energy to monitor developments. Industry Minister Tim Ayres announced that freight and trucking businesses, as well as firms that manufacture or transport fuels, fertiliser and agricultural products, can apply for interest free loans under the 1 billion dollar economic resilience package previously outlined by Prime Minister Anthony Albanese at the National Press Club earlier in April. The minimum stockholding obligation established under the 2021 Fuel Security Package remains unchanged.

Crude supply secured through July

The timing is particularly sensitive given the broader supply context. Global crude and refined products markets have been under severe pressure since the closure of the Strait of Hormuz at the end of February 2026, which disrupted flows from Middle Eastern producers and tightened diesel and jet fuel availability across the Asia Pacific region. South Korea, Japan, and Singapore have all reduced refinery throughput or restricted exports of certain products. In this environment, Australia has limited room to absorb a domestic refining shock and would need to compete on already stretched international markets to secure replacement barrels. Viva Energy stated it expects to replace lost production through its existing fuel import program, which draws primarily on cargoes refined in Singapore, Malaysia and South Korea, the same sources that are currently constrained by the Middle East situation and by their own domestic demand.

Crucially, Viva confirmed that the Geelong Refinery does not typically source Middle Eastern crude. The bulk of its feedstock comes from North and South America, Southeast Asia, and Australia. The company said firm crude supply is contracted through to July 2026, with high confidence of continued supply beyond that window. This insulates the restart timeline from direct Hormuz related crude risk, although refined products imports used to bridge the production gap remain exposed.

Estimated repair duration

The operational outlook depends on the damage assessment currently being conducted on the Alkylation Unit. Workers on site, including AMWU member Tony Hines quoted on Seven's Sunrise, have indicated that repairs will take weeks at a minimum. Viva Energy has now formally confirmed a repair window running beyond the initial RCCU restart, with the refinery expected to remain at around 90 percent of capacity until the alkylation section is fully restored. Independent industry commentary points to a working range of three to six weeks for the RCCU restart in an optimistic scenario, assuming no further damage is uncovered during inspection and that no long lead time components need to be sourced internationally. Full restoration of the Alkylation Unit is likely to extend beyond that window, with a complete restart sequence involving catalyst handling, gradual feedstock introduction, and on spec testing before normal production resumes.

In the immediate term, onsite storage and Viva Energy's terminal network are expected to cover petrol deliveries to service stations, limiting any visible shortage at the pump during the first weeks. Beyond that window, wholesale petrol prices in Victoria are expected to rise, with premium grades widening first given their tighter supply chain. If wholesalers redirect imported diesel cargoes to plug the petrol gap, retail diesel prices could follow upwards within a fortnight.