Fuel Prices Expected To Rise Following Geelong Oil Refinery Fire |
Fuel prices are expected to rise due to the Geelong oil refinery fire. The Geelong oil refinery is one of the only two that Australia has.
The fire specifically took place in the motor gasoline (MOGAS) unit at the Viva Energy oil refinery. The fire has been brought under control as of press time.
Fuel Prices to Rise Following Geelong Fire
According to a report by 9News, the Geelong oil refinery is responsible for 50 per cent of Victoria's supply, as well as 10 per cent of Australia's fuel. These are now expected to be impacted by the fire.
Production output is now expected to be cut down to "minimum rates." At full capacity, the Geelong oil refinery is able to produce up to 120,000 barrels of oil per day. This includes petrol, diesel, LPG and jet fuel.
According to ABC News, Energy Minister Chris Bowen already warned that the fire will impact fuel supply "for some time." Bowen added that petrol production will likely see the most impact.
What Caused the Blaze?
Per a separate 9News report, the FRV said that "The fire appears to have been caused by an equipment failure and will be thoroughly investigated by FRV, WorkSafe, Victoria Police and Viva Refinery."
FRV added, "Firefighters remain on scene and we continue to monitor the situation and work with Viva and partner agencies to ensure the safe operation of the site."
It has been assured that no workers were injured or lost due to the blaze. A comprehensive investigation is due to take place once the site has been deemed safe.
"Right now, as Victoria's health and safety and dangerous goods regulator, WorkSafe's priority is supporting lead agencies to ensure that all work on the site is carried out safely and without risk to workers or the public," WorkSafe Chief Health and Safety Officer Sam Jenkin said.