Motorists face record fuel prices as refinery goes into administration

 

Motorists are bracing for record fuel prices after London's biggest oil refinery went bust yesterday, putting about 1,000 jobs at risk.

Click HERE to view graphic

The Coryton refinery on the Thames, which refines 175,000 barrels of crude oil a day, ceased deliveries of petrol, diesel and heating oil as PricewaterhouseCooper was appointed administrator.

PwC is trying to secure financing to rescue Coryton, which is owned by Switzerland's Petroplus and supplies about 600 BP and Texaco petrol stations in London and the South-east. This represents a fifth of the 2,000 forecourts in the region and a tenth of the UK total.

"By the end of the month, diesel will have hit a record high while petrol will be pushing up towards record levels as suppliers scrabble to bring in supplies from Europe," said Brian Madderson, chairman of RMI Petrol, which represents two-thirds of Britain's forecourts.

Diesel peaked last May at 143.04p a litre and is now at 142.21p. Petrol is 133.89p against a peak of 137.43p.

Richard Howitt, East of England MEP, said: "I don't want to be alarmist about this, but I don't want to be dishonest either. Supplies across London and the South-east could be affected and I have been told this could impact the Olympics."

BP, one of Coryton's biggest customers, said it would urgently seek alternative suppliers for its forecourts, although it has reserves of petrol to last in the short term.

Making matters worse for UK drivers, tanker drivers working for the road haulier Wincanton began a week of industrial action over pay and conditions yesterday that will disrupt supplies to 380 Jet forecourts, owned by ConocoPhilips. Most are in the the Midlands and North but about a fifth are in the South-east.

Coryton's future has been thrown into doubt after emergency talks with the creditors of Petroplus collapsed. The firm has been hit by falling demand, as consumers drive less to save money, and rising oil prices.

Simon Pearson, joint administrator and a PwC partner, said: "Our priority is to continue to operate the Coryton refinery and the Teesside storage business without disruption while the financial position is clarified and restructuring options are explored."

Although Coryton has stopped supplying petrol, diesel, jet fuel and heating oil, it is continuing to refine them and is thought to have about a week until its supplies of crude oil run out and it is no longer able to continue.

The Unite union said it is in talks with Petroplus to try to save the refinery.

BP would not rule out a deal to help resuscitate Coryton. A BP spokesman said it was "seeking clarification" from Petroplus about the status of its operation.

Jean-Paul Vettier, Petroplus' chief executive, said: "We have worked hard to avoid this outcome, but we were ultimately not able to come to an agreement with our lenders to resolve these issues. We are fully aware of the impact that this will have on our workforce, their families and the communities where we have operated our businesses."

Independent Comment
blog comments powered by Disqus
Career Services

Day In a Page

Couture on the Croisette: Fashion hits

Couture on the Croisette

The best outfits from the 2012 Cannes Film Festival
Child of the revolution: the Burmese family that democracy brought back together

Home of the free

The Burmese family that democracy brought back together
Cannes review: Canine accolade and Hitler's return are high spots amid the gloom

Cannes review

Frocks, canine accolade and Hitler's return
Robert Fisk: The going price of getting away with murder... would $33m be enough?

The going price of getting away with murder

Robert Fisk: The long view
Principled Skinner rises above the fray

Principled Skinner rises above the fray

Andy McSmith meets Dennis Skinner
Patrick Cockburn: I fear this terrible massacre will be the beginning of a long civil war in Syria

Patrick Cockburn

I fear this terrible massacre will be the beginning of a long civil war in Syria
Hardeep Singh Kohli: For me, it is all about 'Gregory's Girl', a record of first love

Hardeep Singh Kohli

For me, it is all about 'Gregory's Girl', a record of first love
Christian Louboutin: 'I don't think comfort equals happiness'

Christian Louboutin interview

'I don't think comfort equals happiness'
Happy birthday, Hotel Babylon!

Happy birthday, Hotel Babylon!

Hollywood's home to the A-list celebrates 100 years of discreet luxury
Rupert Cornwell: Low-rise capital could finally reach for the sky

Rupert Cornwell: Out of America

Low-rise capital could finally reach for the sky
The secret life of the red carpet

The secret life of the red carpet

As Cannes reaches its climax with the Palme d'Or and the celebrities gather in London for the Baftas tonight, Kate Youde and Jack Dean investigate the real star of the show
It's not easy being Professor Green: The rapper, the heiress and a drama made in Chelsea...

It's not easy being Professor Green

The rapper, the heiress and a drama made in Chelsea...
Hardcore, hard-wired: How the prevalence of porn is changing our everyday lives

How porn is changing our lives

It's everywhere - from pop videos to fashion magazines to the theatrical stage.
River Phoenix: the final reel

River Phoenix: the final reel

Twenty years after the actor's death, his last film is to be released
Facebook: The shares shenanigans

Facebook: The shares shenanigans

Investors are crying foul over the huge losses they incurred when the social network site floated on the stock market last week