Australia lifts fuel restrictions following fire at its largest refinery

The Australian Prime Minister Anthony Albanese stated 'on Friday that a fire in 'the larger of Australia's two oil refineries would not trigger any fuel restriction, as the Government ramps up its efforts to secure fuel supply due to the War on Iran.

The fire at Viva Energy’s refinery, located in Geelong an hour from Melbourne, is a terrible time for Australia. It imports 80% its fuel and has been racing to secure additional supply?from region allies.

Albanese, after meeting with company officials on site, said that the 120,000 barrels per day refinery currently operates at reduced rates. It produces about 60% of petrol and 80% of diesel, aviation fuel and other products after two of its petrol-processing units were damaged by fire.

The refinery provides more than half of the fuel consumed in Victoria, Australia’s second most populous state. It also supplies around one tenth national demand.

Albanese, a government official, told reporters that the event "here" would not force any changes in the government's four-stage fuel security program, which includes measures to limit fuel usage if the shortages worsen.

He said that the government had put into place four stages to prepare and plan for situations which were primarily impacted by global events.

Australia is now in stage two of its fuel shortage plan. The government has taken precautionary measures to increase fuel supplies.

Albanese said BP also agreed to join a scheme backed by the government, whereby Canberra?underwrites fuel purchases on the spot market to secure additional fuel.

Scott Wyatt, CEO of Viva Energy, said that work remained to be done to safely restore the?refinery unit? and return it to full production.

Wyatt said that the refinery, which is 72 years old, underwent major maintenance in the past year. He also stated that the company has not attempted to increase capacity beyond the safe operating limits while an investigation into the cause of the fire continues.

The fire started on Wednesday evening and was put out after 12 hours.

Albanese arrived in Australia early after returning from Malaysia overnight. He had met Prime Minister Anwar Ibrahim and secured a deal to supply surplus fuel to Australia with the state energy company?Petronas.

Albanese visited Malaysia after visiting Singapore and Brunei in the last week. Canberra is looking to improve its food and energy supply. Renju Jose, Sydney. Chris Reese, Jamie Freed and Renju Jose edited the story.

(source: Reuters)