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A fire has broken out at an Australian oil refinery, further reducing the nation’s fuel supply already threatened by the Iran war. According to Associated Press officials say there were no suspicious circumstances behind the blaze that broke out late Wednesday at the Viva Energy Geelong refinery southwest of Melbourne, and no one was injured. The facility is one of two refineries in Australia and provides 10% of the nation’s gasoline, diesel and jet fuel. Australia has agreed to underwrite two companies buying fuel at prices inflated by the war. Prime Minister Anthony Albanese warned last week that supply disruptions would "have a long tail" even if the Iran ceasefire holds. The government had agreed to terms with Australia’s largest suppliers Ampol and Viva Energy to underwrite contracts for gasoline and diesel bought on the spot market for prices above normal commercial rates, Albanese said. Energy Minister Chris Bowen said Thursday it was too early to tell the extent of the fire’s impact on gasoline production. "The refinery is still producing diesel and jet fuel at reduced levels as a safety precaution," Bowen told the Australian Broadcasting Corp.
On gasoline, Bowen said, "It’s not a positive development. It will have an impact." Fire Rescue Victoria Incident Controller Mick McGuinness told reporters in Geelong the fire started in what’s called the "mogas plant, which is a section of the refinery that assists with the production of high octane fuels." "There’s been a significant leak of liquid hydrocarbons and gases that have fuelled the fire," he added. Scott Wyatt, Viva Energy Chief Executive Officer, said the incident was "very challenging." "It’s obviously something we work very hard to make sure does not occur, so it’s obviously very confronting in that sense. And certainly those that have been on shift last night and have had to confront that incident, it’s been very challenging. So, yeah they’ve done an amazing job," he said. Firefighters said the blaze had been contained to the gasoline plant.
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