Nick Toscano is a business reporter for The Age and Sydney Morning Herald.
The Geelong refinery has restored 80 per cent of overall production and is nearing full capacity in its crucial diesel and jet fuel units.
Major fuel retail chains face pressure to match price cuts and pass on savings to motorists.
The massive blaze at one of Australia’s two remaining refineries knocked out a fifth of its capacity, heightening fears about Australia’s fragile fuel security.
Geelong’s refinery continues to operate, and Viva Energy’s management is privately confident it will have “options to restore production” volumes.
Asian refineries are paying surging premiums to get hold of immediately available oil, driving up the cost of petrol and diesel they will deliver to Australia.
Australian drivers may face a longer wait for relief at the petrol pump after the collapse of Middle East peace talks and an imminent US blockade of Iran’s oil.
Prompted by the Iran war energy crisis, Australia and Singapore struck a deal under which the two countries pledged to continue supplying each other refined fuel and gas.
Fortescue has cited the war in the Middle East as a major driver for the industry to end its reliance on volatile fossil fuels.
Australia has opened its chequebook to buy up as much fuel as possible, as Anthony Albanese flies to Singapore seeking deals to bridge a looming shortfall.
Iran says it will allow ships through the Strait of Hormuz for two weeks in co-ordination with its armed forces, but petrol price relief would not be immediate in Australia.