Diesel price threat averted
Deal averts potential crisis as Essex oil refinery resumes supplies to the South East
The UK’s largest independent oil refinery is back up and running, after administrators signed a deal with its customers to continue supplying fuel.
The Coryton refinery in Essex supplies around 20 per cent of the fuel used across the south-east of England. But deliveries ground to a halt when its parent company, Swiss-based oil firm Petroplus, announced it was insolvent.
The new deal means that the threat of a rise in fuel prices has eased. Diesel pump prices are already at 142.21 pence per litre (ppl) – less than 1ppl shy of the record high of 143.04ppl set in May last year.
Damien Cox, lead analyst from energy broker EnergyQuote, criticised earlier reports from some newspapers that warned of fuel shortages.
“It’s important to have some perspective,” he said. “While this will have a high impact, it will only be short term. There are contingencies in place and supply won’t be affected in the long term. The UK economy is shrinking, and demand for fuel in the eurozone and UK is falling.”
While administrators from Pricewaterhouse Coopers have managed to keep the site running for now, the future of Coryton and its 500 employees is still unclear.
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