As the representative body for the businesses supplying over 85% of the UK’s transport energy, Fuels Industry UK warns that the industry is at a critical juncture. With only four operating refineries remaining – the lowest number in modern history – the UK is becoming more exposed to global instability for both fuels and the many other products that are produced in the sector.
The need for urgent change
The UK fuels sector currently supports over 100,000 jobs and provides 47% of the nation’s total energy demand and FIUK says it has the potential to play a significant role in UK growth and decarbonisation. However, the industry body claims that UK fuels are considered a problem rather than a necessity, and describes domestic refiners as “competing with one hand tied behind their back”.
UK refineries pay up to £400 million annually in carbon costs, while global competitors often face no such pricing, putting domestic production at a disadvantage.
Elizabeth de Jong, CEO of Fuels Industry UK, commented: “Our members are essential to today’s energy security and tomorrow’s transition. But this is an incredibly tough time for the sector. Without urgent policy action to create a level playing field, we risk exporting jobs and emissions and continuing to deindustrialise rather than decarbonise credibly.
“We need more than just consideration from the government. We need a clear commitment to meaningful change that ensures British fuels can compete globally while delivering the low-carbon technologies of the future.”
FIUK sets out its key priorities for global competitiveness:
- A level playing field: Introducing a Carbon Border Adjustment Mechanism (CBAM) by January 2028 to ensure imports carry the same carbon costs as UK-made fuels.
- Securing investment: Moving beyond the uncertainty of current regulatory reviews to provide the long-term stability needed for billion-pound growth markets like SAF, carbon capture and low carbon hydrogen.
- Protecting resilience: Acknowledging that refineries are strategic national assets required for both national security and the net-zero transition and ensuring this is embedded throughout coordinated policies.
Fuels Industry UK urges the government to use this Call for Evidence to deliver a strategy that preserves British expertise and secures a manufacturing base capable of delivering sustainable growth.
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