Latest news with #LindseyOilRefinery
Yahoo
12-07-2025
- Business
- Yahoo
Petrol stations run dry after oil refinery collapse
Petrol stations are running out of fuel after the collapse of one of Britain's biggest oil refineries cut off vital supplies. A financial crisis at the Lindsey Oil Refinery, owned by Prax Group, has unleashed chaos across a string of forecourts near the plant in Lincolnshire, some of which have been unable to secure any supplies for more than a week. The supply crunch has been triggered by a halt in fuel deliveries from the site, which was taken over by the Official Receiver after Prax collapsed. This has left many local petrol stations in disarray as they battle to source more expensive alternatives to remain open, leading to unexpected financial losses. Tom Dant, managing director at Gill Marsh forecourts in Lincolnshire, said his three garages were without fuel for at least eight days in the wake of Prax's failure. 'It is a complete mess,' he said. 'The communication has been less than poor. We can't get anything from the refinery. They have no tankers or drivers, which means there is no way that they can supply us.' Mr Dant remains locked into a five-year supply contract despite Prax's failure, preventing him from sourcing a new fuel partner. This means he has to rely on more expensive short-term supplies, which he said have already cost him £50,000 in lost profits. Bullwinkle's Garage, another nearby forecourt in Lincolnshire, is also facing similar problems. A spokesman for the business said they went five days without any petrol because of the collapse. Both petrol station businesses said they were blindsided by the company's failure, echoing complaints made by Ed Miliband, the Energy Secretary, earlier this month. At the time, Whitehall officials said they were repeatedly assured that the refinery was not under immediate threat. However, Mr Dant questioned why ministers were not aware of the problems at Prax sooner. It comes after The Telegraph revealed that the company had been battling cash flow problems for more than a year owing to a £250m tax liability with HMRC. It is understood that Prax had approached the Government for support in 2024, although their request was denied. Signs of financial stress had also emerged at the company earlier this year when Prax started pulling direct debits from customers days earlier than planned. 'For us, how has it reached the point that the Government let them run an £250m unpaid tax, and it had not been probed before now?' said Mr Dant. Mr Miliband has since ordered a full investigation into the circumstances behind Prax's collapse, including 'the conduct of the directors'. This is likely to raise questions over why the owners of the refinery, Sanjeev Kumar and Arani Soosaipillai, were paid a £3.6m dividend the year before it collapsed. The Telegraph revealed last week that authorities are currently unclear as to the whereabouts of Mr Soosaipillai, who is the chief executive of Prax. The Official Receiver was contacted for comment. Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Telegraph
12-07-2025
- Business
- Telegraph
Petrol stations run dry after oil refinery collapse
Petrol stations are running out of fuel after the collapse of one of Britain's biggest oil refineries cut off vital supplies. A financial crisis at the Lindsey Oil Refinery, owned by Prax Group, has unleashed chaos across a string of forecourts near the plant in Lincolnshire, some of which have been unable to secure any supplies for more than a week. The supply crunch has been triggered by a halt in fuel deliveries from the site, which was taken over by the Official Receiver after Prax collapsed. This has left many local petrol stations in disarray as they battle to source more expensive alternatives to remain open, leading to unexpected financial losses. Tom Dant, managing director at Gill Marsh forecourts in Lincolnshire, said his three garages were without fuel for at least eight days in the wake of Prax's failure. 'It is a complete mess,' he said. 'The communication has been less than poor. We can't get anything from the refinery. They have no tankers or drivers, which means there is no way that they can supply us.' Mr Dant remains locked into a five-year supply contract despite Prax's failure, preventing him from sourcing a new fuel partner. This means he has to rely on more expensive short-term supplies, which he said have already cost him £50,000 in lost profits. Bullwinkle's Garage, another nearby forecourt in Lincolnshire, is also facing similar problems. A spokesman for the business said they went five days without any petrol because of the collapse. Prax collapse Both petrol station businesses said they were blindsided by the company's failure, echoing complaints made by Ed Miliband, the Energy Secretary, earlier this month. At the time, Whitehall officials said they were repeatedly assured that the refinery was not under immediate threat. However, Mr Dant questioned why ministers were not aware of the problems at Prax sooner. It comes after The Telegraph revealed that the company had been battling cash flow problems for more than a year owing to a £250m tax liability with HMRC. It is understood that Prax had approached the Government for support in 2024, although their request was denied. Signs of financial stress had also emerged at the company earlier this year when Prax started pulling direct debits from customers days earlier than planned. 'For us, how has it reached the point that the Government let them run an £250m unpaid tax, and it had not been probed before now?' said Mr Dant. Mr Miliband has since ordered a full investigation into the circumstances behind Prax's collapse, including 'the conduct of the directors'. This is likely to raise questions over why the owners of the refinery, Sanjeev Kumar and Arani Soosaipillai, were paid a £3.6m dividend the year before it collapsed. The Telegraph revealed last week that authorities are currently unclear as to the whereabouts of Mr Soosaipillai, who is the chief executive of Prax.
Yahoo
08-07-2025
- Business
- Yahoo
Tanker drivers lose jobs after refinery collapse
More than 100 tanker drivers have been made redundant after the Prax Lindsey Oil Refinery filed for insolvency. Axis Logistics, the main delivery firm for the refinery in North Lincolnshire, went into administration along with parent company Prax Group at the end of June. Administrator Teneo said the majority of Axis's 137 employees had been made redundant, with a few being kept on "for a limited period to support the orderly closure of the business". Community, the union representing the majority of 120 drivers, said the "devastating news" had "come as a shock". Prax Group bought the Lindsey Oil Refinery from French company Total in 2021. The company's financial reports indicated the plant recorded losses of about £75m between the takeover and February 2024. The Official Receiver is ensuring continued safe operations at the site, the government has said. Teneo said Axis had "suffered operational challenges as a result of the wider group insolvencies". The tankers would be sold to raise money, the administrator added. Paul Warren, from the Community Union, confirmed all 120 tanker drivers had been told they were being made redundant. He said the news "came as a devastating shock" and the morale of the drivers "is one of devastation". "It's just a really sad and sorry time," he added. Martin Simpson, who is one of the drivers affected, said: "Yesterday we were told at 4pm via a Teams meeting we would lose our jobs with immediate affect, and no prior warning." He added that he was "very angry" and had not heard when or how he would receive any redundancy payment. He added that all the drivers will now be "chasing the same job". About 50 were based at Immingham, with 25 to 30 in Thurrock, a similar number in Kingsbury and about 10 in Scotland. A Community spokesperson added: "We are seeking further information from the administrators on next steps, and we will be communicating this to our members as soon as we know more." The "dedicated" workforce deserved "far better", the spokesperson added. News of the redundancies comes after a number of petrol stations around Lincolnshire, which were supplied by another company within Prax Group, ran out of fuel over the weekend. On Friday, the Department for Energy Security and Net Zero (DESNZ) said an agreement had been reached to resume deliveries in and out of the site. A DESNZ spokesperson said: "An agreement has been reached to resume deliveries in and out of the Prax Lindsey Oil Refinery. The Official Receiver is ensuring continued safe operations at the site. "The UK is well supplied with fuel – the site is right next door to one of the biggest and most efficient refineries in the country and stock levels are normal across the UK." Martin Vickers, MP for Brigg and Immingham, said he will visit the refinery on Friday. "My main aim is to ensure the continuation of the facility and the jobs that go with it because it's a vital part of our local economy," he said. "The government has given assurance that they will maintain supplies and I have no reason to doubt that that it the case." Prax Group has been contacted for a comment. Listen to highlights from Lincolnshire on BBC Sounds, watch the latest episode of Look North or tell us about a story you think we should be covering here. Click here to download the BBC News app from the App Store for iPhone and iPad. Click here to download the BBC News app from Google Play for Android devices. Deal struck over fuel deliveries at refinery Workers 'left in dark' over oil refinery job fears Government supporting refinery as 420 jobs at risk Prax Group Axis Logstics Department for Energy Security and Net Zero (DESNZ)
BBC News
08-07-2025
- Business
- BBC News
Lindsey Oil Refinery collapse leaves 120 tanker drivers redundant
More than 100 tanker drivers have been made redundant after the Prax Lindsey Oil Refinery filed for Logistics, the main delivery firm for the refinery in North Lincolnshire, went into administration along with parent company Prax Group at the end of Teneo said the majority of Axis's 137 employees had been made redundant, with a few being kept on "for a limited period to support the orderly closure of the business".Community, the union representing the majority of 120 drivers, said the "devastating news" had "come as a shock". Prax Group bought the Lindsey Oil Refinery from French company Total in 2021. The company's financial reports indicated the plant recorded losses of about £75m between the takeover and February said Axis had "suffered operational challenges as a result of the wider group insolvencies".The tankers would be sold to raise money, the administrator added. Paul Warren, from the Community Union, confirmed all 120 tanker drivers had been told they were being made redundant. About 50 were based at Immingham, with 25 to 30 in Thurrock, a similar number in Kingsbury and about 10 in Scotland. A Community spokesperson said: "We understand that this afternoon our members at Axis Logistics in Immingham were called to a meeting with management and were informed that they would be being made redundant.""We are seeking further information from the administrators on next steps, and we will be communicating this to our members as soon as we know more."The "dedicated" workforce deserved "far better", the spokesperson added. News of the redundancies comes after a number of petrol stations around Lincolnshire, which were supplied by another company within Prax Group, ran out of fuel over the Friday, the Department for Energy Security and Net Zero (DESNZ) said an agreement had been reached to resume deliveries in and out of the site.A DESNZ spokesperson said: "An agreement has been reached to resume deliveries in and out of the Prax Lindsey Oil Refinery. The Official Receiver is ensuring continued safe operations at the site."The UK is well supplied with fuel – the site is right next door to one of the biggest and most efficient refineries in the country and stock levels are normal across the UK."Prax Group has been contacted for a comment. Listen to highlights from Lincolnshire on BBC Sounds, watch the latest episode of Look North or tell us about a story you think we should be covering here. Click here, to download the BBC News app from the App Store for iPhone and here, to download the BBC News app from Google Play for Android devices.
Telegraph
30-06-2025
- Business
- Telegraph
British manufacturing could disappear for good under Labour
Sir Keir Starmer is gaslighting the great British public. The news that net zero taxes will be slashed for thousands of manufacturers in the long-overdue industrial strategy is of course to be wholeheartedly welcomed. Yet, the idea that this means 'Britain is back and open for business,' as the Prime Minister declared last week, really is preposterous nonsense. Perhaps, if Starmer extricated himself from the Westminster bubble even just for a few seconds, he may be able to spot something deeply troubling unfolding across the country on his watch: far from being open, Britain's industrial base is in grave danger of shutting down for good. It's not as if it's happening gradually. The pace at which UK heavy industry is collapsing under the dead hand of Labour is truly extraordinary. Barely a day goes by without another major factory waving the white flag. The latest casualty is Lindsey Oil Refinery in north-east Lincolnshire – one of the country's last remaining refineries and a vital regional employer, as my own father will attest to. The plant provided him with much-needed work in the late 1980s after he left the RAF. With its parent company forced to call in the administrators on Monday morning, a facility that churns out nearly 5.5m tonnes of oil a year – equivalent to roughly about one tenth of the country's capacity – is now in the hands of a government-appointed special receiver. At this rate, the Humber estuary and Teesside may soon be competing to become the country's biggest industrial graveyard as one-by-one, the big plants that dominate the east coast threaten to crumble into the North Sea. In Hull, the owners of Vivergo, the UK's largest bioethanol plant, are threatening to pull the plug. Further north in Redcar, the axe hangs over another big bioethanol producer, while barely a stone's throw away, the Olefins chemicals complex is scheduled for permanent closure. Among the largest of its kind, the site has been a feature of the Teesside skyline since it began operating in the late 1970s. With Labour asleep at the wheel, it is no exaggeration to say that this Government could conceivably preside over the total disappearance of this country's manufacturing capabilities. The North Sea oil and gas industry is surely past the point of no return. The future of other so-called foundational industries such as chemicals, cement, glass, paper, ceramics are all similarly bleak with catastrophic consequences for regional growth, national output, and our self-reliance. Every factory closure threatens to make us even more reliant on foreign imports. It's not as if the Government has any answers, other than the usual hurried handouts. With Jonathan Reynolds reportedly willing to offer support to Lotus to persuade the struggling Chinese-owned carmaker not to shift production to the US, subsidies are at risk of becoming the default solution for ministers bereft of proper ideas any time a fire needs putting out. But history tells us that's never a real solution. Lotus may yet stage a miraculous recovery, but this is a company that has survived for years on handouts amid a tortuous battle to make money. Most of this has come in the form of generous loans from its owners running into the hundreds of millions of pounds, but it has also been the recipient of government funding on several occasions. Taxpayers are entitled to ask why they should have to keep picking up the bill whenever a company is in trouble. In the case of Lindsey Oil Refinery, its owners are facing calls for an official inquiry after they were 'unable' to answer questions about its finances, energy minister Michael Shanks said. Lotus's latest issues, meanwhile, are largely the result of US tariffs, and the bioethanol sector says it will be unable to withstand the onslaught of 1.4bn litres of duty-free ethanol allowed under the UK-US trade deal. Ultimately, the responsibility for a crisis as serious as this has to lie with those in power. It is the consequence of a lethal cocktail of long-term neglect, complacency, short-termism and muddled decision-making. Labour's long-awaited Industrial Strategy will provide some relief – but only some. A reduction in green levies will be meaningful for many manufacturers, but for a great number it is a case of too little, too late. If Sir Keir really wanted to protect British industry and commerce, he would temper the green crusade of his fanatical Energy Secretary, which almost seems deliberately designed to put swathes of perfectly viable companies out of business just to satisfy the militant activists at Greenpeace and Just Stop Oil. The plight of Lindsey is a stark reminder of the folly of over-burdening companies with environmental costs. In corporate filings, the company talks glowingly about its embrace of eco-friendly initiatives such as LED lighting, electric cars, and renewable energy. It even felt compelled to swap face-to-face meetings for zoom calls in the name of saving the planet. One wonders whether the plant may have fared better if management had been less distracted by box-ticking green initiatives. But the Prime Minister is weak, as proven by the horribly one-sided trade agreement he returned from Washington with. Starmer's deal with Trump sold Britain's ethanol makers down the river. One thing that's for certain is that repeated handouts are unsustainable. Somebody needs to get a grip on the tsunami of issues – not just green taxes but other energy costs, along with reams of red tape, and National Insurance rises – that threaten to drown businesses. Starmer faces a choice: find a way to allow more businesses to survive without taxpayer money or allow a slew of failing companies to shut down and accept that the foundations of the economy must change. The current approach is neither one nor the other. It harks back to the days of British Leyland – but in some ways it's worse. At least then the policy of nationalising everything was deliberate. In the absence of anything remotely coherent under the bumbling duo of Starmer and Reeves, the flurry of interventionism seems almost entirely accidental.
