Petrol stations in chaos after collapse of Oil Refinery, disrupting fuel supply

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A halt in fuel deliveries from a site taken over by the Official Receiver after Prax collapsed has triggered a supply crunch, leaving many local petrol stations in disarray. The affected stations are struggling to source more expensive alternatives to remain open, resulting in unexpected financial losses.

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Tom Dant, managing director at Gill Marsh forecourts in Lincolnshire, said his three garages were without fuel for at least eight days following Prax’s failure. “It is a complete mess,” he stated. “The communication has been less than poor. We can’t get anything from the refinery. They have no tankers or drivers, which means there is no way that they can supply us.

Despite Prax’s collapse, Mr. Dant remains locked into a five-year supply contract, preventing him from sourcing a new fuel partner. As a result, he has to rely on more expensive short-term supplies, which have already cost him £50,000 in lost profits.

Other nearby forecourts are facing similar problems. Bullwinkle’s Garage, for instance, went five days without petrol due to the collapse. “We’re just trying to stay afloat,” said a spokesman for the business.

The situation highlights the challenges faced by petrol stations in the wake of Prax’s collapse and the need for a reliable fuel supply chain to prevent such disruptions in the future.

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