23^rd April 2008                        

Grangemouth dispute and Petrol Prices

Recent speculation linking petrol pump prices and possible industrial action at Ineos Scottish refinery at Grangemouth is unfounded.

Chris Hunt , Director General of the United Kingdom Petroleum Industry Association said: “Grangemouth is a UK refinery processing crude oil into finished petroleum products; it therefore has no effect on internationally traded crude oil, which ultimately forms the basis of prices at the pump”.

Hunt continued “Stocks at Grangemouth are sufficient to supply Scottish consumers through the period of the strike planned for the weekend and cargoes of product are being sourced to satisfy demand during the period the refinery is coming back on stream. There have been temporary stock outs caused by panic buying, but service stations will be replenished as soon as possible. The oil industry urges Unite, the union involved in the dispute, to keep the power and steam plant at Grangemouth fully operational during the strike period and allow the jetties, tank farm and tanker loading facility to remain operational in order to ensure consumers, especially in vulnerable sectors, are kept supplied. This will also help in the refinery restart process.”

Hunt concluded “Grangemouth refinery supplies Scotland, the other eight refineries in the UK are operating normally. Therefore, the effect if any will be restricted”

Ends

Enquiries to: Nick Vandervell or Chris Hunt, UKPIA Tel. 0207 269 7600

Notes to editors:

1. UKPIA represents the oil refining and marketing companies operating in the UK, which also own approximately 2,152 of the UK's 9,271 service stations. 
2. UKPIA members own and operate the nine crude processing oil refineries in the UK.
3. Grangemouth refinery, situated on the Firth of Forth, is part of the INEOS group and was previously owned by BP up until December 2005. The refinery has a capacity to process 10 million tonnes of crude oil per year.

Petroleum product output approx 898,000 cubic metres:

                Petrol                                                       22%

                Diesel                                                      24%

                Kerosene & jet fuel                                    13%

                Gas oil                                                      8%

                Fuel oil                                                     15%

                LPG/petrochemical feedstocks                     12%      

                Fuel gas/other                                            6%