LONDON: Britain’s net imports of petroleum products increased last year after a new wave of refinery closures and capacity cuts left the country unable to meet its demand.
The cuts have been driven by rising overseas competition that put refining margins under heavy pressure. They have left Britain increasingly dependent on fuel imports, raising concerns the country will be vulnerable to supply shocks, price spikes and bottlenecks at strained import terminals.
British net imports of petroleum products amounted to more than 7.5 million tonnes in 2014 – equivalent to the annual output of a mid-size refinery, a Reuters analysis of figures from the Department of Energy and Climate Change (DECC) showed. That was up from about 2 million tonnes in 2013 – the first time Britain had been a net importer since 1984.
But demand for petroleum products increased by less than 1 percent between 2013 and 2014.
Latest figures from the UKPIA refining trade group showed Britain had a net deficit of 55 percent on jet fuel and nearly 50 percent on diesel – above the “high-risk” energy security threshold of 45 percent designated by the International Energy Agency.
We do have serious concerns about our road fuels energy resilience,” Brian Madderson, chairman of the Petrol Retailers Association, said.
