Grangemouth Refinery Row Rumbles On

April 24th, 2008

Scotland’s First Minister  Alex Salmond has waded into the Grangemouth refinery row by urging the two sides to get back to the negotiating table. Staff are planning to strike at the Scottish refinery next week, and owners INEOS have started shutting down the site in preparation for the industrial action. The resulting fear of fuel shortages is causing many motorists to panic buy – and there are already reports of fuel rationing and shortages.

Mr Salmond told the SNP’s Spring Conference: “Now we have an impasse between management and unions at Grangemouth, threatening the disruption of fuel supplies. Let our message – Scotland’s message – be crystal clear. Both sides should stop debating with each other over the airwaves, return to the negotiating table, and stay there until they resolve their differences.”

The plea came as up to 1,200 UNITE union members at the refinery prepared to strike on 27th and 28th April. INEOS said that because of safety issues, the strike would effectively close the plant – which produces 9 million litres of clean fuels per day and is Scotland’s only crude oil refinery – for a month.

Meanwhile, drivers were facing rationing on fuel spending yesterday as motorists flocked to the forecourts to panic buy fuel. Forecourt queues were reported all over Scotland.

At least one petrol station resorted to rationing fuel in a bid to avert fuel shortages. Site owner Chris Furphy imposed the maximum spend of £20 per car at his Jet site, Mount Blow service station, in Dalmuir, Clydebank in a bid to avoid running out. Maureen Garth, a cashier at the site, said the forecourt had run out of petrol after rationing fuel at the weekend. She said: “We had to ration it because we wanted to make sure our regular customers were able to get some petrol – we thought it was only fair that everybody got a chance. We had unleaded until last night, but then that ran out and left us with just diesel. You wouldn’t believe the abuse we’ve taken over the last couple of days though, it’s been horrible. I never knew there were so many awful people about.

“I think most of the sites around here have totally run out of fuel, a couple seem to be closed because they didn’t introduce the rationing.”

However, fuel availability for motorists outside of Scotland will not be affected by the potential shutdown at the Grangemouth refinery, according to Ray Holloway, director of the Petrol Retailers Association. “If the shutdown does occur, the affect on supply in Scotland will be limited due to the sheer volume of fuel already in the supply chain,’ he said. “If motorists in Scotland buy their normal fuel requirement, any inconvenience ultimately caused by the industrial dispute at Grangemouth will be minimised. It is still not certain that the refinery will close, and even if it does the fuels already in storage will remain available for distribution to forecourts across Scotland.”

Mr Holloway stressed that it would be the bulk-buying of fuel that would ultimately be responsible for any shortages: “Even if supplies are not interrupted, if motorists buy more than their normal requirements, they will be putting abnormal pressure on the road delivery services of the oil industry in Scotland. Forecourts do not have unlimited storage facilities. If they are prematurely drained of fuel stocks due to bulk buying this will lead to consumer inconvenience while they are refilled.

“Fuel suppliers have planned for these circumstances and by working with the Scottish and UK Governments will be able to ensure forecourt retailers requirements continue to be delivered by road tanker.”