REFINERY FIRE INTENSIFIES SPOTLIGHT ON AUSTRALIA'S INPUT SECURITY

The fire at the Viva Energy Australia refinery in Geelong has reinforced Grain Producers Australia’s concerns about the resilience of Australia’s fuel system, coming at a time when global tensions are already placing pressure on key agricultural inputs.

The incident highlights how quickly domestic disruptions can expose broader structural risks, particularly for industries such as agriculture that rely on consistent access to fuel and fertiliser.

Grain Producers Australia Research Development and Extension Spokesperson Andrew Weidemann said the timing of the incident was significant as grain producers move into a critical phase of the production cycle.

“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.”

Mr Weidemann said fuel remains a fundamental input across all stages of grain production, from seeding through to harvest and freight.

“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.”

GPA has consistently advocated for stronger domestic capability across critical inputs, including fuel and fertiliser, as part of a broader national security and food production framework. HERE

Meanwhile, major refineries around the country at locations such as Bulwer Island, Queensland; Altona, Victoria; Kwinana, Western Australia and Kurnell, New South Wales have been progressively shut down in the past 20 years.

“This is not just about energy policy, it’s about ensuring Australia can continue to produce and move food in a more uncertain global environment,” Mr Weidemann said.

“Increasing domestic manufacturing capacity, including refining, supports regional jobs, strengthens supply chains and reduces exposure to global shocks.”

The Australian grains industry, valued at around $26 billion annually, is particularly sensitive to volatility in input markets, with fuel and fertiliser costs playing a direct role in on-farm decision making.

Mr Weidemann said recent global developments, including conflict in the Middle East, have added further pressure to already tight supply chains.

“We’ve seen how quickly global events can flow through to input markets,” he said.

“This is why building resilience here in Australia is a practical step to give growers greater certainty.”

GPA will continue to engage with the Federal Government to ensure agriculture is considered in discussions around fuel security, supply chain resilience and domestic manufacturing capability.

ENDS

Further Information:

GPA RD&E Spokesperson Andrew Weidemann: 0428 504 544

GPA Executive Officer Rachael Oxborrow: 0416 705 193