Australia's failed "green" domestic energy policies had already sparked a fuel-supply shock shortly after the U.S.-Iran conflict disrupted tankers at the Hormuz chokepoint. Now, a fire has broken out at the larger of Australia's two remaining oil refineries, adding even more fuel supply woes. 

Victoria state fire authorities said the blaze erupted at Viva Energy's 120,000-barrel-per-day Geelong refinery, one of only two operating oil refineries left in Australia. The refinery accounts for roughly 10% to 12% of Australia's fuel supply while covering about half of Victoria's fuel demand.

Reuters cited authorities early Thursday saying the fire at the refinery is now "under control."

In a separate report, Al Jazeera noted that flames were reported to be as high as 200 feet and that a "gas leak" was potentially the source of the fire.

"This is not a positive development, but obviously there's a long way to go in terms of working out just what the impact is," Energy Minister Chris Bowen told local outlet Channel Nine.

The incident has once again exposed how thin Australia's refining buffer has become after "green" was prioritized over common-sense domestic energy policies, including the import of a vast share of its fuel needs from the Gulf.

Viva Energy said the incident is set to affect petrol and aviation gasoline. The good news is that the plant is still producing jet fuel and diesel.

Australian Strategic Policy Institute analyst John Coyne warned, "I would expect we'd see a price hike depending on the scale of the damage, and secondly, it reinforces the challenges we have in terms of sovereign and resilient capabilities here."

There was no indication from Viva Energy of the specific damage or a repair timeline.

Australia's decision to prioritize "green" policies while allowing its fossil-fuel complex and refining capacity to deteriorate looks absolutely reckless and now nation-killing.

Let's not forget there has been a wave of high-value energy assets damaged in conflicts across Eurasia or mysterious industrial accidents elsewhere.