HomeAUPetrol Prices Drop Despite Refinery Fire; Economic Strain Still Looms for Australians

Petrol Prices Drop Despite Refinery Fire; Economic Strain Still Looms for Australians

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In a surprising turn of events, petrol prices are on the decline, even after a fire broke out at a Geelong oil refinery yesterday. Despite this, the treasurer has cautioned that Australians might still face significant economic repercussions.

Initially, there were fears that the fire at the Viva Energy refinery would severely disrupt fuel supplies. However, it seems that the average petrol price is predicted to slip below $2 per litre nationwide over the weekend, thanks to a dip in global prices.

Prime Minister Anthony Albanese made a visit to the affected facility today and assured the public that the refinery’s fuel production had not been significantly compromised.

Geelong viva refinery fire
A fire at an oil refinery in Geelong has not impacted fuel supply as much as some experts predicted. (Nine)

“We are maintaining 80 percent of diesel production and 80 percent of aviation fuel production,” he stated.

To cover the shortfall, imports are stepping in, and experts are optimistic about the current trends.

“We’re getting up close toward 40 days of petrol, so these are good trends,” ANU supply chains expert David Leaney said.

The good news may stop there, if the warning from Treasurer Jim Chalmers is anything to go by.

Treasurer Jim Chalmers.
Treasurer Jim Chalmers. (Nine)

“The consequences of this conflict on the other side of the world are already very serious for Australians and they risk becoming severe,” he said in Washington DC today.

He believes Australia won’t head towards a recession, but that economic growth could slowed considerably.

It remains to be seen how this will impact the budget, set to be handed down next month.

While the fuel supply situation is improving, some want more to be done to ensure Australia is never in this position again.

Opposition Leader Angus Taylor has called for more oil exploration within Australia. (Eamon Gallagher)

Queensland Premier David Crisafulli called on the government to open a third oil refinery in Gladstone.

Federal Opposition Leader Angus Taylor agreed, saying Australia needed to get its hands dirty and produce more oil.

“We’ve got to get more oil out of the ground,” he said.

“We’ve got to drill, drill, drill.”

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