PRESELI MP Stephen Crabb has warned that the Government’s planned approach on petroleum tariffs in a No Deal Brexit scenario would undermine British oil refining and give foreign refineries an unfair advantage.
Following a meeting with United Kingdom Petroleum Industry Association (UKPIA), a No Deal planning meeting at the Cabinet Office and concerns raised by Valero, Stephen Crabb has written to the International Trade Secretary Liam Fox to ask that the proposed zero import tariffs on gasoline in the event of a No Deal Brexit are looked at again.
In the event that the UK leaves the EU without agreeing a deal, petroleum products from UK refineries exported to the EU will immediately face additional costs from import tariffs. However the UK Government has said that it will not charge tariffs for product coming from the EU into the UK. This means that there will no longer be a level playing field and UK refineries, including the Pembroke Valero refinery, would be at a serious disadvantage.
Six refineries operate in the UK and the industry contributes £8.6 billion directly to UK GDP, while supporting a further £12.6 billion elsewhere in the economy; it also provides more than 120,000 jobs and supports a further 180,000.
Commenting on the concerns, Stephen Crabb said: “Zero import tariffs on gasoline would see UK gasoline producers unable to compete with the EU and Russian suppliers who will have tariff-free access to the UK. This would seriously jeopardise the competitiveness of refineries such as Pembroke, unnecessarily putting jobs and livelihoods on the line.”
“I have tabled questions in Parliament about the potential effect of a No Deal on the petrochemical industry and I have written to the International Trade Secretary urging the Government to look again at these zero import tariffs. I understand why Ministers would want to stop price increases at the pump in a No Deal scenario but the economic damage to British refineries would far outweigh any potential impact on consumers. This point is of huge importance and the UK Government must be looking to protect our key industries at such an uncertain time.”
“Since the referendum I have been entirely consistent in arguing for a negotiated deal that lays the foundation for a close ongoing partnership with the EU including trade, security and education after we leave the EU. I believe in honouring the referendum vote but in a responsible way. I have spent the last three years in close discussions with local businesses and employers about what kind of approach is best for Pembrokeshire. That is why I have opposed No Deal outcome and continue to support the deal that is on the table.”
