Australia's oil refinery crisis after fire at Viva Energy's Corio refinery and decline to two refineries

Consensus Summary

Australia’s fuel security is under scrutiny after a fire at Viva Energy’s Corio refinery in Geelong, which supplies half of Victoria’s fuel and 10% of the nation’s. The incident highlights the country’s reliance on just two remaining refineries—Ampol’s Lytton in Brisbane and Viva’s Corio—after six others closed since 2000 due to economic pressures and competition from Asian refineries. The closures, including ExxonMobil’s Port Stanvac (2009), Shell’s Clyde (2009), and BP’s Bulwer Island (2015), were driven by high costs and global market shifts. The recent closure of the Strait of Hormuz, following a U.S./Israel attack on Iran in late February 2026, has further strained global oil supplies, exposing Australia’s vulnerability. While the Albanese government has pledged to support the remaining refineries and diversify fuel sources, opposition leader Angus Taylor blames the current administration for failing to prioritize domestic production. Labor’s former Environment Minister Tanya Plibersek has emphasized the need for self-sufficiency, though a 2013 parliamentary report cautioned that such a goal could be costly, given Australia’s high operational expenses and reliance on Asian refining capacity.