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The UK's four remaining oil refineries are significantly impacted by a £400 million annual carbon tax that foreign refineries do not face. Fuels Industry UK warns that this tax places the UK refining sector at a disadvantage, risking job losses and increasing reliance on foreign fuel.

The sector has lost two refineries in 2025, with the closures of Lindsey and Grangemouth. The remaining refineries - Humber, Stanlow, Pembroke, and Fawley - are operated by Phillips 66, Essar, Valero, and ExxonMobil, respectively. The industry body advocates for a Carbon Border Adjustment Mechanism to ensure fair competition, urging the government to recognize the importance of the refining sector.