 Grangemouth is one of only nine refineries in the UK |
Motorists have been urged not to panic buy fuel amid warnings that the shutdown of Scotland's only crude oil refinery could lead to shortages. Ineos claims it could have to close its refinery at Grangemouth for a month on safety grounds ahead of a strike by 1,200 members of the Unite union. Industry analysts told the BBC that there is no need for drivers to stock up with petrol at the pumps. First Minister Alex Salmond urged the union and Ineos to enter into talks. Speaking at the SNP spring conference in Edinburgh, he said: "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 48-hour strike is to be held on 27 and 28 April. Ineos started its shutdown of plant operations on Friday night and expects to have completed it by the end of the week. Unite has accused management of overreacting by starting the closure so early. Nick McGregor, an oil analyst with stockbrokers Redmayne Bentley, said he believed the move was necessary to ensure the refinery was safe during the strike. But he said the UK held 70 days of fuel in reserve which would be sufficient to cover the month that Ineos expected Grangemouth to be out of action. He added: "Even if Ineos are right and Grangemouth has reduced or even no production for a month there is enough petrol in the UK to cover that. "The system has to gear up quickly to distribute those reserves and alternate capacity from different refineries to the areas it is most needed. "People will make it harder, however, for the system to do so if they put pressure on the system by stocking up." The UK only has nine oil refineries, with Grangemouth providing about 10% of the total refinery capacity. Phased closure It supplies all of Scotland, Cumbria, Northumberland and parts of Yorkshire. However, Mr McGregor said the closure of the refinery should not affect petrol prices. His views were echoed by Douglas Robertson, from the Scottish Motor Trade Association, which acts for petrol retailers in Scotland. Mr Robertson said: "I think the statement 'don't panic' is a very valid one at this stage. There is certainly no case for panic buying and filling your tank now." The dispute centres around changes Ineos, which bought the refinery from BP in 2005, wants to make to pensions. Ineos has said the changes are necessary to ensure the company remains competitive. But Unite has described the pension changes as "unreasonable" and said there was no need for Ineos to begin shutting down the plant until much later in the week. The Scottish Government has called on Unite and Ineos to get around the negotiating table to resolve the dispute.
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Even if Ineos are right and Grangemouth has reduced or even no production for a month there is enough petrol in the UK to cover that
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