Fire Rescue Victoria said crews were called at around 11:15 p.m. local time to the Viva Energy Refinery, where the fire involved liquid fuels and gases and remained uncontrolled as of early Thursday.“All emergency response personnel and Viva employees have been accounted for,” the agency said in a statement, adding there were no reported casualties.

Authorities urged residents in Geelong and surrounding areas to remain indoors and close windows and doors as smoke spread across the region due to shifting winds.The refinery, operated by Viva Energy Group, is one of only two remaining oil refineries in Australia and can process up to 120,000 barrels of crude oil per day.

It supplies more than half of fuel demand in Victoria state and about 10% of Australia’s total fuel consumption.Fire officials said the blaze was contained to the plant, while the company indicated there was no immediate disruption to fuel supplies.

Australia’s Energy Minister Chris Bowen said an investigation would be launched, describing the incident as likely accidental at this stage. He added that while diesel and jet fuel production continued, petrol output could be affected for some time.

The incident comes as Australia faces heightened fuel security concerns linked to disruptions in global energy markets, particularly following tensions affecting the Strait of Hormuz, a critical route for international oil shipments.

Prime Minister Anthony Albanese said last month the government would temporarily cut fuel excise and road user charges to offset rising costs driven by the conflict.

Willie Walsh, director general of the International Air Transport Association, told reporters in Singapore that while crude prices had fallen below $100 per barrel following a U.S.-Iran ceasefire announcement, jet fuel costs were likely to remain elevated due to constraints on refining output.

“If it were to reopen and remain open, I think it will still take a period of months to get back to where supply needs to be given the disruption to the refining capacity in the Middle East,” Walsh said, adding that the region is critical to global supply of refined products beyond aviation fuel.

The Strait of Hormuz, which carries about a fifth of the world’s oil trade, has been heavily disrupted during the recent conflict, squeezing fuel availability and driving up costs across the aviation sector.

Airlines in Asia have responded by cutting flights, carrying additional fuel from origin airports and adding refueling stops, measures that have increased operational costs for carriers already dealing with a sharp rise in jet fuel prices.

The impact has been most acute in import-dependent markets such as Vietnam, Myanmar and Pakistan, where supply constraints have tightened further after China and Thailand halted jet fuel exports and South Korea capped shipments at previous levels.

Walsh said a resumption of crude flows could encourage exporters such as China and South Korea to restart shipments of refined products, easing pressure on the market over time.

However, he noted that higher refinery margins, known as crack spreads, would be needed to incentivize increased jet fuel production.

“There is capacity available once we get the crude oil flowing, but it’ll take a little bit of time,” Walsh said.