UKPIA report reflects challenging conditions for UK oil refining
17 September 2012
The United Kingdom Petroleum Industry Association (UKPIA) Statistical Review 2012 shows continuing flat demand for oil products. The association represents the companies that operate the UK’s seven major oil refineries, which altogether processed 74.7 million tonnes of crude oil and produced 76.1 million tonnes of refined products in 2011.
UKPIA represents the companies that operate the UK’s seven major oil refineries
Key indicators for 2011 against 2010 include:
* Overall UK oil demand was 69.2 million tonnes, 1.5% lower than in 2010
* Petrol demand 13.9 million tonnes, down 7.6%
* Diesel demand 26 million tonnes, down 0.4%
* UK refineries processed 74.7 million tonnes of crude oil, up 2% but capacity utilisation remained just under 80%, below the global average (Source: DECC - DUKES data)
* Duty collected on road fuels was £26.9 billion, down 1.5% despite increased duty rate
* UK pre-tax pump prices remained the cheapest amongst major EU countries
* Petrol price averaged 133.7 pence per litre, up 14%
* Diesel price averaged 139 pence per litre (Source: Wood Mackenzie)
Commenting on these figures, UKPIA Director General Chris Hunt said: “2011 has been yet another challenging year for the downstream oil industry and the start of 2012 was overshadowed by the closure of Coryton refinery in Essex. UK refineries continue to be under enormous pressure through a combination of a tough commercial climate, reduced demand for oil products, structural imbalances in supply/demand and a challenging legislative background in the EU and the UK.
“Working together with government to an agreed policy vision will be an essential feature of meeting the numerous challenges facing the sector, as well as addressing the wider energy issues facing the nation, particularly those relating to security of supply, growing dependence upon imported fuels and the resilience of our fuel supply system.”
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