The exporting disadvantage a no deal Brexit would bring to 海角视频 oil refining has been flagged up.
Darren Cunningham, who heads up Phillips 66鈥檚 Humber Refinery, has reiterated concerns as uncertainty continues in Westminster, with the clock ticking and a definite withdrawal still up in the air.
Britain faces a 4.7 per cent tariff on fuel exports should we leave and face World Trade Organization rules, while the 海角视频 has established a 0 per cent import rate.
Mr Cunningham, who welcomed BBC economics editor Faisal Islam to the South Killingholme plant as part of 海角视频 Petroleum Industry Association work on the subject, said: 鈥淚t puts 海角视频 manufacturing at a competitive disadvantage. It is a negative headwind the industry doesn鈥檛 need. 海角视频 refining has been a pretty competitive industry. Over the years there have been closures and you look at the prospects going forward, with decarbonisation, the 海角视频 petroleum product demand is going to continue to decline.
鈥淚t is going to remain a competitive industry, and it is a global industry so we have to guard against anything that gives the 海角视频 a competitive disadvantage.鈥
鈥淭he 海角视频 is a net exporter of petrol products, it puts us at an immediate disadvantage. I don鈥檛 think it is what the government intended, it intended to protect the consumer. I believe the tools are there. Duty, the tax on 海角视频 fuel, is among the highest in Europe, and it could reduce duty if that鈥檚 the concern.鈥
The issue was first raised by Grimsby MP Melanie Onn in the House of Commons earlier this year, as she acted on concerns voiced by the South Humber bank鈥檚 other operator, Total Lindsey Oil Refinery.
Rotterdam, another strong refining cluster, could effectively export to the 海角视频 without additional charge, yet if British refineries want to send to Europe, they would be charged, effectively having to discount to compete.聽
It could lead to an enforced focus on the domestic market, where road miles from refinery to pump would remain an advantage, providing the refining cost remains competitive with overseas refineries.
