Scotland’s sole oil refinery at Grangemouth has ceased crude oil processing, marking the end of an era for the UK’s oldest refinery, writes Peter Brown.
Petroineos, a joint venture between Ineos and PetroChina, announced the transition of the site into a fuel import and distribution terminal, citing unsustainable financial losses and global competition from more modern refineries.
The closure, confirmed in September 2024 and finally implemented on 29 April 2025, results in the loss of approximately 400 jobs, reducing the workforce from 475 to just 75 over the next two years.
Transport News spoke to one haulier, who didn’t want to be named, about Petroineos’ transition from processor to importer: “It’s too early to say how it might affect us but my hope is that it will import similar levels of fuel. However, my thoughts are with many of the workforce who have lost their jobs.”
The Unite union criticized the move, labelling it an ‘act of industrial vandalism’ and expressing concerns over the lack of protection for highly skilled jobs.
Meanwhile, the SNP called for the refinery to be nationalised, which was rejected by the UK government.
Despite a £50 million investment by Petroineos for the site’s transformation, the decision has sparked debates about energy security and economic impacts.
The UK and Scottish governments have pledged a £100 million support package, including £20 million in new funding, to aid the workforce and invest in local energy projects.
The refinery’s closure is part of a broader trend in Europe, with other facilities like Shell’s German Wesseling refinery also shutting down, reflecting the continent’s shift towards reducing oil refining capacity.
The Grangemouth site, which supplied 65% of Scotland’s oil products, is now poised to play a role in the country’s transition to a low-carbon future, with discussions ongoing about repurposing the facility for green manufacturing.
