Britain must protect domestic fuel production or risk losing the resilience our economy depends on

“Hydrocarbons underpin the UK economy - from transport and freight to chemicals, construction, agriculture and defence - and the Iran crisis has shown that we cannot rely solely on other countries’ production.

A strong domestic refining base alongside North Sea production supports jobs, resilience and the entire manufacturing ecosystem. But without urgent protection against carbon and investment leakage, more UK refineries will close. The UK needs a clear commitment to a CBAM or equivalent now.

Fuels Industry UK’s evidence in the session told MPs that:

• UK refineries face hundreds of millions in carbon emissions policy costs not faced by competitors in the US, Middle East or India, making investment in lower‑carbon fuels harder. We need a UK Carbon Border Adjustment Mechanism with an effective export mechanism as part of its design.
• The sector supports 4,000 high‑skilled jobs directly and over 100,000 in the supply chain.
• With the right policy framework, refineries can invest in our domestic supply chain, strengthening the UK’s industrial base and growing both UK supply and exports. Refined products will be vital in all future scenarios as they provide fuels but also support other sectors with supply of chemicals, lubricants, bitumen and inputs to renewable supply chains.