UK Oil Refineries Face £400M Carbon Tax Challenge Amid Industry Call for Policy Change
CLIMATE POLICY, REGULATION & CARBON MARKETS
The UK's four remaining oil refineries are burdened by a £400 million annual carbon tax, impacting competitiveness against foreign counterparts. Fuels Industry UK warns of diminishing refining capacity and increased exposure to global fuel instability.
The sector lost two refineries in 2025, with calls for a Carbon Border Adjustment Mechanism to level the playing field. The industry supports 100,000 jobs and needs urgent policy changes to sustain operations and future low-carbon technologies.
Feb 23, 2026, 5:11 PM
