The local economy has suffered a considerable setback with over 100 tanker drivers rendered redundant given the collapse of the Prax Lindsey Oil Refinery. The primary delivery firm for the refinery based in North Lincolnshire, Axis Logistics, has gone into administration, resulting in job losses for the majority of its 137 workers. The Community union, representing a significant portion of the affected drivers, expressed their shock, labelling the news as ‘devastating’.
Prax Group took over the Lindsey Oil Refinery from Total in 2021. However, financial reports demonstrate losses amounting to approximately £75m until February 2024. Despite the administration, the Official Receiver is making sure that the site’s operations continue safely. Due to the insolvency of the larger group, Axis Logistics has faced operational challenges. Consequently, administrators are taking measures to sell tankers to raise funds.
Paul Warren, a representative of the Community Union, made it known that all 120 tanker drivers, including about 50 from Immingham, have been informed of their redundancy. The union is actively sourcing more information about the situation to provide assistance to their members. Accorded with recent fuel shortages at petrol stations around Lincolnshire, supplied by another company under Prax Group, this news poses serious concern. However, the Department for Energy Security and Net Zero has conveyed that an agreement to resume deliveries at the site has been finalised.
Approached for comments, the Prax Group has yet to respond.
This piece has been adapted from original reporting provided by the BBC.
