Tanker drivers lose jobs after refinery collapse

Axis Logistics Limited, a delivery firm for the Lindsey Oil Refinery, is being wound down

More than 100 tanker drivers have been made redundant after the Prax Lindsey Oil Refinery filed for insolvency.

Axis Logistics, the main delivery firm for the refinery in North Lincolnshire, went into administration along with parent company Prax Group at the end of June.

Administrator Teneo said the majority of Axis's 137 employees had been made redundant, with a few being kept on "for a limited period to support the orderly closure of the business".

Community, the union representing the majority of 120 drivers, said the "devastating news" had "come as a shock".

Prax Group bought the Lindsey Oil Refinery from French company Total in 2021.

The company's financial reports indicated the plant recorded losses of about £75m between the takeover and February 2024.

The Official Receiver is ensuring continued safe operations at the site, the government has said.

Teneo said Axis had "suffered operational challenges as a result of the wider group insolvencies".

The tankers would be sold to raise money, the administrator added.

Prax Group bought Lindsey Oil Refinery in 2021

Paul Warren, from the Community Union, confirmed all 120 tanker drivers had been told they were being made redundant.

He said the news "came as a devastating shock" and the morale of the drivers "is one of devastation".

"It's just a really sad and sorry time," he added.

Martin Simpson, who is one of the drivers affected, said: "Yesterday we were told at 4pm via a Teams meeting we would lose our jobs with immediate affect, and no prior warning."

He added that he was "very angry" and had not heard when or how he would receive any redundancy payment.

He added that all the drivers will now be "chasing the same job".

About 50 were based at Immingham, with 25 to 30 in Thurrock, a similar number in Kingsbury and about 10 in Scotland.

A Community spokesperson added: "We are seeking further information from the administrators on next steps, and we will be communicating this to our members as soon as we know more."

The "dedicated" workforce deserved "far better", the spokesperson added.

About 50 drivers based at Immingham have been made redundant

News of the redundancies comes after a number of petrol stations around Lincolnshire, which were supplied by another company within Prax Group, ran out of fuel over the weekend.

On Friday, the Department for Energy Security and Net Zero (DESNZ) said an agreement had been reached to resume deliveries in and out of the site.

A DESNZ spokesperson said: "An agreement has been reached to resume deliveries in and out of the Prax Lindsey Oil Refinery. The Official Receiver is ensuring continued safe operations at the site.

"The UK is well supplied with fuel – the site is right next door to one of the biggest and most efficient refineries in the country and stock levels are normal across the UK."

Martin Vickers, MP for Brigg and Immingham, said he will visit the refinery on Friday.

"My main aim is to ensure the continuation of the facility and the jobs that go with it because it's a vital part of our local economy," he said.

"The government has given assurance that they will maintain supplies and I have no reason to doubt that that is the case."

Prax Group has been contacted for a comment.

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