South-East hauliers could face fuel supply concerns

Hauliers working in London and the South-East could face fuel supply shortages following the owner of Coryton refinery, Swiss firm Petroplus, filing for insolvency today (24 January).

Coryton, situated on the Thames Estuary, outputs 10% of the UK’s national fuel and 20% of the South-East’s supply, but its owner was forced to file for insolvency following the recall of the company’s debt by its lenders.

Ian Barclay, operations director at overnight parcels specialist Aspray24, warns that logistics firms may also see prices driven up.

He says: "Hopefully, someone will step in to maintain the jobs at Coryton and ensure that supplies are retained. I would hate to think that prices are driven up as a result of supply problems."

Union Unite says it is in negotiations with Petroplus and the government to try and protect the 1,000 jobs at risk from the closure. It adds: "We firmly believe that joint action by the owners and government can help secure the business."

A  statement from Petroplus says: "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."

The government has since pledged its support for the facility, which is for now continuing to operate under the direction of administrator PricewaterhouseCoopers.

It comes as oil tanker drivers employed by Wincanton stage a week long series of walkouts over pay and conditions.