Will Fuel Embargos and Refineries Folding Impact Pump Price?
Thursday 26 January 2012 Back to Blog
It's a worrying time for fleet mangers and owner drivers given the fuel embargos placed on Iran and Petroplus filing for insolvency.
Petroplus is Europe's largest independent oil refinery and owns Coryton refinery in the UK. On Monday the plant stopped producing fuel supplies.
Petroplus failed to obtain an extension on its loan repayment dates last December and subsequently ran out of cash. Chief executive, Jean - Paul Vettier said: "We have worked hard to avoid this outcome, but were ultimately not able to come to an agreement with our lenders to resolve these issues given the very tight and difficult European credit and refining markets. 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."
As anyone with a motor vehicle will tell you the cost of fuel has risen considerably over the last few years, far greater than inflation and has had a considerable impact on any businesses which requires a commercial vehicle.
Petroplus employed around 850 staff, 500 employees and 350 contractors. Though analysts believe that the shortfall in supply from the plant closing will be made up by other plants, everyone must have eyes on the price on the fuel as the warning signs of another significant increase cannot be ruled out.
Richard Howitt MEP for East of England is discussing ways that employees of Petroplus can have their jobs saved.
Petroplus employed people in the UK, France, Germany, Switzerland, and Belgium.