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Fuel production at a critical Australian oil refinery has dropped significantly following a major fire, although authorities have confirmed that no stricter fuel restrictions will be introduced.

The Viva Energy Geelong Refinery, one of only two remaining oil refineries in Australia, supplies around half of Victoria’s fuel and about 10% of the nation’s total fuel needs.

The fire, which began just before midnight on Wednesday due to equipment failure, burned for around 13 hours before being brought under control.

Prime Minister Anthony Albanese said fuel production has been partially restored, with around 80% of diesel and aviation fuel output continuing, while petrol production stands at about 60%.

He added that output is expected to improve gradually as recovery work at the refinery continues.

The government warned that the incident could place further pressure on fuel prices and national reserves but urged the public to remain calm.

Australia remains at stage two of its national fuel security plan, and officials confirmed that the situation does not currently warrant escalation to stricter measures such as fuel rationing.

Prime Minister Albanese returned early from a Southeast Asia visit focused on strengthening fuel supply agreements, including securing an additional 100 million litres of diesel from Brunei and South Korea.

He also stated that Australia should strengthen its domestic refining capacity to reduce dependence on imported fuels in the future.

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