Hundreds of jobs have been put at risk after the owner of a Lincolnshire oil refinery was forced into liquidation, with the future of dozens of petrol stations also uncertain.
The 500-acre Lindsey Oil Refinery employs around 400 people and processes around 5.4m tonnes of fuel a year, accounting for roughly 10% of the UK’s supplies. The refinery is one of just five in the UK and can process 20 types of crude into petrol, diesel, aviation fuel, kerosene and red diesel.
The Telegraph reports that oil stopped being delivered to the refinery on Saturday over concerns related to its commercial viability, though it is believed to still be operating using existing oil stocks.
Prax’s petrol-station business, meanwhile, is thought to comprise 76 company-owned sites with a further 86 dealer-owned forecourts. Brands operating under Prax include Harvest Energy, Breeze, and Total Energies (the latter under licence from the French oil major).
While the economic viability of the Lindsey refinery is under the spotlight, The Telegraph reports Prax’s petrol-station business is profitable, with administrators seeking buyers for the company-owned forecourts.
Dealer-owned forecourts who are contracted to receive fuel from Prax are said to be seeking alternate suppliers as the situation develops.
Gordon Balmer executive director of the Petrol Retailers Association said the refinery’s closure was ”regrettable”, and the PRA will ”continue to monitor the situation and liaise with the Government to ensure our members and forecourts are kept updated”.
Prax has been contacted for comment.
This article was updated to reflect developments in this story.
