The Lindsey Oil Refinery in North Lincolnshire has entered a pivotal phase after ceasing operations this week, following a mounting financial crisis at parent company Prax Group. The shutdown, which comes less than a month after the refinery filed for insolvency on June 29, has left hundreds of workers facing redundancy and disrupted fuel supply chains across the UK.

Lindsey Oil Refinery

Prax Group

Court-appointed receivers took control of the facility earlier this month as emergency funding ran dry. Although the government had stepped in with short-term measures to keep the refinery operational, those arrangements expired on July 20, leading to immediate and significant cutbacks. The refinery, one of the largest in the country, refined up to 200,000 barrels of oil per day before operations halted.

Unite the Union, which represents many of the plant’s roughly 400 workers, has sharply criticized the handling of the crisis. In a statement, the union demanded immediate action from the government to preserve jobs and ensure continued fuel supply. “This is an absolutely unacceptable outcome for workers and the region. The government must act now, not later,” a union spokesperson said.

Unite the Union

The shutdown has already begun to ripple through the broader economy. Petrol stations across northern England reported fuel shortages over the past several days, exacerbated by suspended deliveries from the Lindsey site. These disruptions appeared even after a July 17 agreement between the government and site administrators to maintain minimal processing capabilities during the insolvency process.

As businesses downstream of the refinery feel the impact, some have started to distance themselves from the troubled operator. TotalEnergies-affiliated fuel operators are reportedly forming a collective effort to disengage from current contracts with Prax. One independent petrol station owner involved in the talks described the situation as an “operational nightmare,” adding, “We can’t plan supply orders day-to-day anymore. It’s unsustainable.”

TotalEnergies

Behind the immediate crisis lies a broader financial unraveling. Prax Group’s troubles stretch beyond the UK. In South Africa, the group recently halted bitumen supply from the Natref refinery—where it is involved in operations—citing maintenance issues and what was described as a planned withdrawal. Industry analysts view the exit as part of a wider retreat amid heavy financial strain.

Prax Group

South Africa

“The pressures are not localised to the UK,” noted an industry source familiar with Prax‘s international operations. “They’re dealing with misaligned assets across geographies, and the cash flow crunch has caught up with them.”

Prax

The UK government has said it is actively working to find a long-term operator for the Lindsey site. Temporary crisis loans have been made available to prevent further deterioration, but policy officials acknowledge that time is limited. According to government representatives, negotiations with prospective buyers are ongoing, though no firm commitment has been announced.

Some observers point to deeper systemic vulnerabilities in the UK’s energy sector. In tandem with the events at Lindsey, other large utility firms have signaled distress, and the economic backdrop—marked by high inflation and tightening credit markets—continues to place pressure on infrastructure-dependent industries.

For communities around North Lincolnshire, the fate of the refinery carries particular significance. It is not only a major employer but also a foundational element of the region’s industrial identity. Councillors and local business leaders are also pressing for a swift resolution.

As for Prax, the group has yet to make a detailed public statement on the UK developments. With both British and international operations undergoing retrenchment, and global supply disruptions looming, the next steps may determine not only the future of Lindsey, but the company itself.

Prax