<div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>A fire has ripped through one of Australia's two critical oil refineries, stoking fears that a fresh supply shortage </span><a href="https://www.9news.com.au/videos/national/energy-minister-says-refinery-fire-will-have-impact-on-fuel-supply/cmo0khpjn002h0gmm6ormky95" rel="" target="" title="will grip motorists and drive up prices at the pump once again."><span>will grip motorists and drive up prices at the pump once again.</span></a></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><a href="https://www.9news.com.au/national/geelong-oil-refinery-fire-corio-blaze-triggers-warning-for-residents-to-stay-inside/c9009c7c-4cf1-4674-86b3-02481b25154e" rel="" target="_blank" title="The Viva Energy oil refinery in Geelong, Victoria"><span>The Viva Energy oil refinery in Geelong, Victoria</span></a><span> suffered damage in an explosive fire which began about 11pm yesterday, with production output expected to be slashed to "minimum rates" following the blaze.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>When at full capacity, the refinery can produce up to 120,000 barrels of oil per day, including petrol, diesel, LPG and jet fuel.</span></div></div><div><div id="adspot-mobile-medium"></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>READ MORE:</span></strong><span> </span><a href="https://www.9news.com.au/national/cfmeu-to-offer-fuel-vouchers-to-eligible-apprentices-to-shield-young-union-members-from-fuel-shock/c29cfbf7-0fc6-4c79-93fb-638fb93f9b3c" rel="" target="_blank" title="Thousands of union tradies to be offered $100 fuel vouchers"><strong><span>Thousands of union tradies to be offered $100 fuel vouchers</span></strong></a></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>LIVE UPDATES:</span></strong><span> </span><a href="https://www.9news.com.au/world/us-israel-iran-war-live-updates-april-16-donald-trump-latest-world-news-headlines/b87380ba-5f3b-470d-bdca-a98c869f95af" target="_blank" title="Energy minister admits worst possible outcome of refinery blaze"><strong><span>Energy minister admits worst possible outcome of refinery blaze</span></strong></a></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>It supplies over 50 per cent of Victoria's and 10 per cent of Australia's fuel.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Experts have warned the incident will likely result in a supply chain and price shock in Victoria and beyond.</span></div></div><div><div class="OUTBRAIN" data-reactroot="" data-src="//www.9news.com.au/national/petrol-prices-forecast-supply-geelong-oil-refinery-fire-update/e2b90419-e37c-462b-85de-68b01f4031d1" data-widget-id="AR_5"></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"Initially it's going to have an effect because there will be less supply, [we] should see a pickup in price," Senior Lecturer from the School of Economics at The University of Sydney Dr Luke Hartigan told </span><a href="https://www.nine.com.au/?rf=true" rel="" target="_blank" title="Nine.com.au."><span>Nine.com.au.</span></a></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"It's not a positive thing to have that out of commission now."</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"Under normal conditions usually these things do take time, but considering what's been happening it could happen right away."</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The impact will be felt initially in Victoria, where Viva Energy supplies most of its fuel.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Fuel prices and shortages may also worsen as national output shrinks at the refinery, Hartigan said.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"If you think about what happened with the Strait of Hormuz, that is 20 per cent [of global oil supply], and you can see that effect around the world," Hartigan said.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"Even in a small part, when you've got restricted supply, it means it could have an effect."</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>READ MORE: </span></strong><a href="https://www.9news.com.au/world/us-israel-iran-war-live-updates-april-15-donald-trump-strait-of-hormuz-blockade/ec13877c-524d-470a-97fb-2a683f1d1667"><strong><span>As war chaos deepens, one nation is playing a unique role</span></strong></a></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Hartigan said the fire will likely "dull the benefits" of the federal government's efforts to ease supply and price pain, including the temporary excise reduction.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Swinburne's Professor of Transport Technology and Sustainability Hussein Dia said any positive progress made by the Victorian state government may be reversed, including the impacts of offering free public transport for the month of April.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"It's not just a shock to supply, but it is a loss of flexibility, and that's what's going to put upward pressure on prices, despite what the government has been doing," Dia said.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"This was unexpected, and the government has been trying to shield consumers by the cutting of the fuel excise, and in Victoria, we have the free public transport."</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Dia said fuel prices in Victoria will likely grow, but said it might not be a "dramatic" spike at the pump tomorrow.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"The system was already under pressure and now it's operating with less buffer, and that will likely show up in prices over time," he added.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The flow-on effect of the Geelong fire could also touch the supermarket supply chain if Victorian farmers lose even more access to diesel.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"There's less access to food because if trucks can't get diesel, then they can't deliver food," Hartigan said.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"There's the worry that there's an impact on pricing... and that there is less supply of diesel now because that refinery is [partially] offline."</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>READ MORE:</span></strong><span> </span><a href="https://www.9news.com.au/national/fuel-crisis-australia-anthony-albanese-signs-fertiliser-deal-brunei/9482506f-3d2c-41b9-9f28-aa28d294cc91"><strong><span>Australia signs key deal with Brunei amid fuel crisis, recession fears</span></strong></a></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Energy Minister Chris Bowen earlier said the blaze will worsen Australia's national fuel supply as the refinery slashes its production, describing it as "not a positive development".</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"There will be an impact on production," Bowen told </span><em><span>Today</span></em><span>.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"At this point, production of jet fuel and diesel is continuing at the refinery at reduced levels for safety reasons as a precaution. At this point, the impact is mainly on petrol production."</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Australia's only other operating oil refinery, the Ampol Lytton Refinery in Brisbane, may need to fill in the gaps left by Viva Energy's reduced output.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The Brisbane refinery also provides about 10 per cent of Australia's fuel.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The remainder is imported from overseas, including the Middle East and Singapore.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"It will be a delicate balance between trying to get it to work a bit longer but not trying to work it too hard," Hartigan added.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><em><span>NEVER MISS A STORY:</span></em></strong><span> </span><em><span>Get your breaking news and exclusive stories first by following us across all platforms.</span></em></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><ul><li><strong><em><span>Download the 9NEWS App here via</span></em></strong><span> </span><a href="https://apps.apple.com/au/app/9news/id1010533727" target="_blank"><strong><em><span>Apple</span></em></strong></a><span> </span><strong><em><span>and</span></em></strong><span> </span><a href="https://play.google.com/store/apps/details?id=nineNewsAlerts.nine.com&amp;hl=en_AU&amp;pli=1" target="_blank"><strong><em><span>Google Play</span></em></strong></a></li><li><strong><em><span>Make 9News your preferred source on Google by</span></em></strong><span> </span><a href="https://9.nine.com.au/8x987w" target="_blank"><strong><em><span>ticking this box here</span></em></strong></a></li><li><strong><em><span>Sign up to</span></em></strong><span> </span><a href="https://login.nine.com.au/edm?client_id=nineatnine" target="_blank"><strong><em><span>our breaking newsletter here</span></em></strong></a></li></ul></div></div>