Australia scrambles to secure energy as war on Iran fuels uncertainty

Due to the war on Iran disrupting oil supplies through the Strait of Hormuz, Australia is facing fuel shortages, as of April 2026. The country, heavily reliant on imported refined fuels from Southeast Asia, is scrambling to secure energy supplies. Prime Minister Anthony Albanese is engaging in "fuel diplomacy" with countries like Singapore, Malaysia, and Brunei to maintain fuel and fertilizer imports. The Australian government is also implementing measures like fuel tax cuts and advertising campaigns to encourage fuel conservation. However, experts suggest these are short-term solutions and Australia needs to address its long-term dependence on fossil fuels. The closure of the Strait of Hormuz has drastically reduced shipping traffic, impacting Australia's refined fuel supply chains.

In April 2026, Malaysia and Australia agreed to a mutual energy supply pledge to ensure the continued flow of oil and gas between the two countries. This agreement aims to mitigate disruptions to global fuel supplies caused by the ongoing Iran war, which has impacted shipments from the Middle East following Iran's actions in the Strait of Hormuz. The deal establishes a system for swapping surplus energy resources once domestic demand is met in each country. Across Asia, governments are seeking alternative energy sources due to rising pump prices and fuel rationing resulting from the conflict. The agreement between Malaysia and Australia represents a regional effort to bolster dwindling energy supplies.

A fire at Viva Energy's Geelong oil refinery in Victoria, Australia, burned for 13 hours, significantly impacting petrol, diesel, and jet fuel production. The incident prompted Prime Minister Anthony Albanese to cut short his fuel diplomacy mission in Southeast Asia to visit the site and assess the damage. Energy experts warn that the fire could lead to a temporary fuel price spike of up to 20 cents per litre in Victoria and potential short-term outages at petrol stations. The refinery's reduced output will increase Australia's reliance on fuel imports, with the government securing additional diesel from Brunei and South Korea to mitigate supply concerns. While production is reduced, Viva Energy is confident that they will be able to replace the impacted petrol production with imports.

A fire broke out at the Viva Energy oil refinery in Geelong, Victoria, Australia, on Wednesday night after a gas leak. The refinery, which produces approximately 10 percent of Australia's fuel, is one of only two operating in the country. Firefighters brought the blaze under control by Thursday noon. The incident raises concerns about Australia's fuel security, as the nation relies heavily on imports and is already facing supply disruptions due to the Middle East conflict. The refinery, which began operating in the 1950s, was reportedly running at maximum capacity due to the ongoing global oil crisis. In response, Prime Minister Anthony Albanese announced that Australia has secured an additional 100 million liters of diesel from Brunei and South Korea.

A fire erupted at Viva Energy's Geelong refinery in Victoria, Australia, on April 16, 2026, raising concerns about potential petrol shortages. The Geelong plant is one of only two operating oil refineries in Australia and supplies 10% of the country’s total demand. Emergency crews are working to extinguish the blaze, which is impacting petrol production more than diesel and aviation fuel. While production of jet fuel and diesel is continuing at reduced levels for safety reasons, the fire's impact on overall fuel supply is still being assessed. The incident occurs amidst global oil supply disruptions due to the Middle East conflict, prompting the Australian government to seek fuel security measures, including discussions with regional allies like Malaysia.

A large fire broke out at the Viva Energy oil refinery in Geelong, Australia, prompting warnings for residents south of the Corio refinery to seek shelter due to smoke. While the fire is ongoing, the refinery continues to produce diesel and jet fuel at reduced capacities. Energy Minister Chris Bowen acknowledged the fire is "not a positive development" and will likely impact petrol production for some time. The government is working with Viva Energy to assess the full impact of the blaze and will provide updates to the public.