Oil tariff change welcomed by refining sector after domestic production put at risk by Brexit

发布时间:2020-07-02编辑:admin阅读(357)

Changes to the UK Global Tariff on oil imports have been welcomed after they threatened to blow a hole in post-Brexit oil refining parity.

The Department for International Trade has ensured that domestic producers can trade on similar terms to international competitors.

It has been described as “reducing the risk of disadvantaging UK refineries that export” by the UK Petroleum Industry Association.

It has lobbied on behalf of refineries, with Phillips 66 lead executive Darren Cunningham also voicing concern and Total Lindsey Oil Refinery having a dire warning about the future under such terms read out in Westminster.

Britain faced a 4.7 per cent tariff on fuel exports should we have left the EU and defaulted to World Trade Organization rules, while the UK had established a 0 per cent import rate.

Oil tariff change welcomed by refining sector after domestic production put at risk by Brexit 甘肃快3 第1张An aerial shot featuring Phillips 66, left, and Total Lindsey Oil Refinery to the right, looking south from the Humber Bank.

Director-General of UKPIA, Stephen Marcos Jones said: “It is encouraging that government has listened to industry. We hope to see reciprocal tariffs delivered through free trade agreements, particularly for our trade with the EU, but the changes delivered by the UK Global Tariff should facilitate continuing and hopefully growing international trade in the fuel sector.

“By government supporting the UK’s manufacturing base as well as reducing import tariffs from WTO levels, UKPIA is hopeful that the sector will continue to adapt and work with government to realise our shared vision of delivering a low carbon economy that includes a significant role for the downstream oil sector.”

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Rotterdam, another strong refining cluster, could have effectively exported to the UK without additional charge, yet if British refineries wanted to send to Europe, they would be charged, effectively having to discount to compete.

The change came on the day Phillips 66 revealed a MoU agreement with power generator Vitol and energy business Uniper to deliver a huge decarbonisation project for the Humber refining cluster and beyond.

Oil tariff change welcomed by refining sector after domestic production put at risk by Brexit 甘肃快3 第4张Refinery leaders Thomas Behrends, general manager at Total Lindsey Oil Refinery, left; and Darren Cunningham, site director at Phillips 66.

Mr Cunningham had described the tariff issue as a “negative headwind” for the industry with the UK a net exporter. Phillips 66 described it as a good outcome, having contributed to the UKPIA reponse.

Jean-Marc Durand, the former Total Lindsey Oil Refinery boss, had also told of the importance of “maintaining a level playing field,” after former Grimsby MP Melanie Onn brought the issue up in the House of Commons stating it could threaten the North Killingholme facility’s viability.

New site head Thomas Behrends added: "We welcome the decision taken by the Department for International Trade."  

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