London 1/9/2026 - Industry says Government has repeatedly recognised refining as critical to energy security and industrial competitiveness, but firms now need confirmed action

As Parliament returns from the summer recess, Fuels Industry UK is calling on Ministers to implement a series of commitments made over the past year on refinery competitiveness, energy costs and carbon leakage, warning that continued delay risks undermining domestic refining capacity and energy security.

The sector says the challenge now is implementation and the Budget is the time to deliver.

Throughout the past year, Ministers at every level of Government have emphasised the importance of domestic refining:

• "The question isn't whether Britain will still be using oil and gas, the question is where it comes from." - Andy Burnham, Prime Minister, July 2026
• "We want to accelerate the work to get refineries into the CBAM, because that is the way in which we can help to protect their competitiveness." - Ed Miliband, Secretary of State for Energy Security and Net Zero in evidence to ESNZ Committee, February 2026
• "The Government are absolutely committed to a long-term future for the UK's refinery sector" - Michael Shanks, Minister for Energy in statement about Prax Refinery, June 2025

Most notably, Ministers have committed to assessing whether refined products should be included within the UK's Carbon Border Adjustment Mechanism (CBAM). The Autumn Budget provides a key opportunity to confirm inclusion of refined fuels, helping to level the playing field between UK refiners facing carbon costs and imports from higher-emitting overseas producers.

In addition, Government has committed to:

• Reviewing refinery eligibility for energy-intensive industry compensation schemes.
• Considering refinery competitiveness within wider industrial support measures.

Elizabeth de Jong, Fuels Industry UK CEO said:

“Recognition must now be matched by delivery. Ministers have repeatedly acknowledged the strategic importance of UK refining and committed to reviewing CBAM and the Autumn Budget must now demonstrate that those commitments will be translated into policy.

UK refineries provide critical national resilience, support thousands of skilled jobs and reduce the UK's dependence on international supply chains. Their future is critical to delivering reindustrialisation, while reliable fuel supply is a prerequisite for growth in every part of the UK.

As Parliament returns, industry must now see concrete progress on the commitments Ministers have already made. Our industry is securely delivering the fuels the UK needs and working to decarbonise our operations. Government must now play its part in ensuring the UK retains a competitive refining sector."

ENDS

Notes to Editors:

• Fuels Industry UK believes a well‑designed CBAM for fuels ensures that UK decarbonisation does not come at the cost of UK industrial decline. It supports a level competitive playing field, long‑term investment in domestic refining and UK energy security. Introducing an appropriate mechanism would help to mitigate some of the ETS compliance cost on the manufacture of exports and further reduce the risk of carbon leakage. More can be found here.
• For more quotes from Ministers over the past year, please see here.

Contact: 

• Jamie Baker, jamie.baker@fuelsindustryuk.org, 0207 269 7605