The fire that broke out at Viva Energy's Geelong refinery, southwest of Melbourne, on Wednesday has caused the facility to lose 40 per cent of petrol production, as well as 20 per cent of both its diesel and jet fuel capacity.
The facility supplies 10 per cent of fuel nationally and half of Victoria's stock.
Prime Minister Anthony Albanese said the incident would not lead to fuel security measures being bumped up to level three, which would have led to an increase in voluntary efforts to limit fuel use.
"The good news is ... that no one was injured in this incident that occurred, and that is a tribute to the professionalism and to the management issues that have been put in place to deal with an incident like this," Mr Albanese told reporters on Friday.
"We'll give an update tomorrow about fuel supplies that are on hand. Fuel is continuing to come in."
Australia is at stage two of the national fuel security plan, a practical guide aimed at managing supply challenges related to conflict in the Middle East.
Exactly what stage three would look like is not clear, but would involve more practical measures to limit fuel use.
The prime minister cut short his trip to Southeast Asia, where he was aiming to shore up supply with leaders from Brunei and Malaysia, in order to visit the Geelong refinery.
It comes as the government announced it had signed an agreement with BP to allow shiploads of fuel to be underwritten, in order for additional supply to come into the country.
The Geelong refinery, which has been operating at full capacity in recent weeks, would be slowing its output for the time being, Viva Energy said.
Chief executive Scott Wyatt said there was still a way to go before the site returned to previous levels of output.
"Any shortfalls of production, we're very confident that we can cover that with our import program, which is quite substantial," he said.
"It's been, obviously, a challenging event for our team. It's a shocking incident."
Despite the impact on production, he said costs would not be passed on to drivers.
"Whatever costs this incident has caused the refinery will be absorbed in our refinery operations," he said.
"We will not be passing that on to the community."
The fire primarily affected infrastructure responsible for the production of petrol and aviation gasoline, which is distinct from jet fuel and usually used by small aircraft.
The refinery inferno has intensified national debate about Australia's liquid fuel security and lack of domestic refineries.
Australia imports more than 90 per cent of its liquid fuel following the closure of six oil refineries operating since the turn of the century.
Victorian Premier Jacinta Allan said the destructive blaze and unfolding global oil crisis raised questions about building more refineries to shield the nation.
"It's why, as a national cabinet, states, territories, and federal governments have agreed to work together on these issues," she said in Bendigo.
While deals have been struck to allow more petrol and diesel from overseas to enter Australia due to the crisis, peak bodies have warned fuel with poorer quality entering the market could damage vehicles.
Road Freight NSW chief executive Simon O'Hara said the poorer fuel had the potential to increase operating costs and disrupt supply chains.
"Even small changes in fuel quality can lead to engine damage, blocked filters, reduced performance and ultimately trucks being taken off the road," he said.
"Industry is increasingly concerned about the variability in fuel entering the Australian market, particularly as supply expands beyond traditional sources."
12°C