The collapse of the Prax-owned site removes around 10% of UK domestic fuel production and puts 420 jobs at risk. It comes just two months after Scotland’s Grangemouth refinery ended crude processing, further highlighting the fragility of the UK’s shrinking refining sector.
Industry body UKIFDA said it is “closely monitoring” the situation and is in contact with the Department for Energy Security and Net Zero, stressing the need for a “coordinated approach” to mitigate potential supply issues.
Deliveries have since resumed under the oversight of the Official Receiver, and short-term crude supply has been secured. However, the duration of operations remains uncertain, with government officials now actively seeking a buyer within two weeks.
Energy Minister Michael Shanks has called for an investigation into the directors of State Oil (Prax’s parent company), citing “longstanding issues” and a lack of financial transparency. Shanks also committed to reviewing the Energy Intensive Industries compensation scheme to better support UK refineries facing high electricity costs.
Elizabeth de Jong, CEO of Fuels Industry UK, described the collapse as “another blow” to the sector and renewed calls for urgent policy reform to make domestic refining competitive.
Union Unite has blamed government inaction, warning the collapse is part of a broader failure to support oil and gas workers through the energy transition.
While the government confirms fuel stock levels remain “normal across the UK”, questions remain over long-term energy security and refinery viability.
Timeline Snapshot:
- 28 April 2025 – Grangemouth ceases crude refining
- 30 June 2025 – Lindsey refinery enters administration
- 8 July 2025 – Deliveries resume; buyer search begins
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Image from Prax Group