QUEENSLAND COUNTRY LIFE | Likely cause of 'ferocious' oil refinery fire revealed, as blaze continues

A fire at the Viva Energy Geelong Refinery has again put a spotlight on Australia’s fuel security, as grain producers head into seeding.

The refinery, one of only two in the country alongside the Ampol Lytton Oil Refinery, experienced explosions and a major blaze late Wednesday, likely caused by equipment failure.

Queensland Country Life reported that petrol production is expected to be impacted in the short term, although supply gaps are expected to be covered by imports.

GPA RD&E spokesperson Andrew Weidemann said the incident reinforces how exposed Australia is when domestic capacity is limited.

"Grain producers are heading into seeding with input costs and availability already under pressure, particularly with ongoing uncertainty in global fertiliser markets," Mr Weidemann said.

"While this incident may not immediately disrupt supply, it reinforces how exposed Australia is when domestic capacity is limited."

"When one of the two facilities we have in Australia experiences disruption, it puts a spotlight on how much we rely on a small number of domestic assets, alongside imported supply," he said.

"That is a structural issue that needs to be addressed."

While there is no immediate supply disruption, the timing is significant for growers, with fuel critical for seeding and early season operations.

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