The UK Petroleum Industry Association (UKPIA) on behalf of its manufacturing members welcomes the revised UK Global Tariff, which secures competitive tariffs for the UK’s downstream oil sector.
The Department for International Trade’s (DIT) announcement on tariffs today means that UK manufacturers of oil products will continue from January 1st 2021 to compete on similar trade terms to international competitors, while government looks to lower import tariffs overall.
Following the consultation on the UK Global Tariff (UKGT) by DIT earlier in the year, government has published its revised tariff regime for trade after 2020, which lowers import tariffs from World Trade Organisation (WTO) rates, but continues to offer tariffs that reduce the risk of disadvantaging UK refineries that export.
UKPIA members1 - which supply 33% of the UK’s energy needs annually including most of its petroleum products - trade internationally, reflecting integration in a highly optimised supply chain and the need to balance domestic supply and demand. Any change to tariff rates can be expected to impact companies differently, the revisions following consultation will mean that the UK refineries will be protected, while future trade negotiations will look to secure reciprocal tariffs at even lower rates to provide a competitive fuel supply chain for both importers and manufacturers that, historically, has been “good for energy resilience, good for the economy and good for jobs.”2
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 Vision3 of delivering a low carbon economy that includes a significant role for the downstream oil sector.”
ENDS
Enquiries to: UKPIA Press Office, Tel. 020 7269 7605
- UKPIA represents eight oil refining and marketing companies that operate the six major oil refineries in the UK and source over 85% of the transport fuels used.
- Government “Review of the Refining and Fuel Import Sectors in the UK” (2014).
- The UKPIA Future Vision (2019) report can be found here: https://www.fuelsindustryuk.org/media/1wbnicao/ukpia-vision-july-2019-2.pdf
- The Government Response on the UK Global Tariff can be found https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/885943/Public_consultation_on_the_UK_Global_Tariff_government_response.pdf