Refinery administration and tanker driver strike prompt fuel fears

Lincolnshire walkout coincides with Coryton administration
The administration of an Essex oil refinery at the same time as a Lincolnshire tanker driver strike has prompted fears that the price of fuel in the UK could rocket.

Up to 1,000 jobs are now at risk at the beleaguered Coryton plant in Essex – which supplies some 600 BP and Texaco petrol stations in London and the south-east.

Administrator PwC said its priority was to ensure service continuity at the site while it looked at restructuring options, after Swiss parent company Petroplus confirmed it would file for bankruptcy yesterday.

Trade union Unite said that employees were prepared to “work through the night” to ease the backlog, while officials continued their dialogue with administrators and the government.

“Now that Coryton is in administration we expect normal operations to resume shortly, while PwC get on with the job of securing a future for the refinery,” said regional officer Russ Ball.

“The workforce is cautiously optimistic. The union is doing everything it can to support the refinery and the jobs that depend on it.”

The facility is one of only eight oil refineries in the UK and accounts for one-fifth of fuel supplies in the south-east region, raising concerns that operations around this summer’s Olympics could be hit.

East of England MEP Richard Howitt said he did not want to “be alarmist” but “supplies could be affected, and I have been told this could impact the Olympics”.

However, energy minister Charles Hendry dismissed fears around London 2012 and said that commuters should not stock up on fuel, adding: “There is no need at this stage to be concerned about what’s going on here.”

Meanwhile, more than 120 fuel truck drivers have started a seven-day strike in Lincolnshire in protest over “punitive 20 per cent cuts” to pay and conditions.

Unite says oil giant ConocoPhillips – which owns JET petrol garages – wants to force down wages.

The walkout affects three oil terminals and is expected to hit 340 JET forecourts.
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