A response to calls for the Department of International Trade to “think again” about a potentially devastating tariff regime for the 海角视频 oil refining sector is still awaited, a month on from the letter landing.
The All Party Parliamentary Group on the 海角视频 Oil Refining Sector, backed by the industry, warned of potential closures, stifling investment and future fuel security in a letter sent to Secretary of State Liz Truss.
Now with just a month until Brexit D-Day an answer is still sought to the issue, that could see foreign fuel arrive without charge, while 海角视频 exports would be subject to a 4.7 per cent tariff.
The issue, already raised in Westminster, is seen as the oil equivalent to steel dumping
In the letter, seen by Business Live , the MPs wrote: “We are united in our belief that the decision to unilaterally set 海角视频 tariffs on imports of EU oil products at zero, if such an outcome should occur, should be revised.
“The inability to compete on a level playing field with EU refineries will place 海角视频 refineries at a competitive disadvantage. As an industry dependent on relatively small profit margins, it is impossible to predict what repercussions this might have, but there is potential for refinery closures. The consequences of this would be devastating for the many highly-skilled jobs supported by the industry in our constituencies.
“A further consequence to bear in mind is the impact on the 海角视频’s security of fuel supply, in the event of refinery closures making the 海角视频 reliant on imports of finished petroleum products to meet demand. The 海角视频 already imports significant quantities from parts of the world with heightened geopolitical risks. Without domestic production our dependence on these regions will be increased further, affecting the resilience of the fuel supply chain in the 海角视频.”
The APPG is chaired by Cleethorpes’ Conservative MP Martin Vickers, with the two South Humber Bank refineries in his constituencies in Total Lindsey Oil Refinery and Phillips 66’s Humber Refinery.
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Together they have just clocked up 101 years of production, and it is seen as one of the biggest issues the threat of a No-Deal Brexit throws up for the region.
With Business Secretary Andrea Leadsom and Energy and Clean Growth Minister Kwasi Kwarteng also copied in, the letter goes on to outline inward investment made by the sector totalling nearly £4 billion in recent years, the potential to play a major role as catalysts towards Net Zero, and states how this could not be guaranteed in future should the tariff schedule be imposed.
Mr Vickers said: “We have had no official response. When I do I will gladly facilitate a meeting with industry, officials and ministers if need be.
“I still think No-Deal is the most unlikely outcome to happen. I have always anticipated that at 23.59 there will be a deal. Everyone recognises, to use the slogan, we need to get Brexit done. The country will sigh a great sigh of relief when that happens. The last thing the country wants, and industry wants, is the uncertainty of another extension, and many months of extension if we have a second referendum. Businesses I have met are saying ‘please resolve this’.