In more bad news for the motorist is looks like Petroplus will be going ahead with its closure of 3 oil refineries in Europe. It is inevitable that the closure of these sites will push up fuel prices somewhat due to reduced production capacity in Europe. What is more worrying is that Europe as a whole is becoming increasingly reliant on refined fuel from outside the Eurozone, meaning that fuel prices are more and more being dictated by foreign countries
In this instance Petrolplus is struggling because European lenders will not extend their 1 billion dollar credit line in order to allow them to purchase crude oil. Without this Petrolplus is unable to secure more purchases of crude oil and therefore cannot plan to refine the oil into petrol. Net result? Closure of refineries and yet more pressure on the cost of fuel in Europe and the UK.