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Britain enters into phased tax agreement Essar Oil UK

October 13/2021

MOSCOW (MRC) -- Britain threw refiner Essar Oil UK a lifeline with a phased tax payment deal, allowing it to keep producing just as the country struggles with motorists draining petrol stations in a panic-driven buying frenzy, said Hydrocarbonprocessing.

Essar Oil (EOUK), which runs the 200,000 barrel-per-day Stanlow refinery, had been in talks with HM Revenues & Customs (HMRC) over extending a January deadline to repay hundreds of millions of pounds in deferred taxes. "With this time to pay arrangement, we now have significant runway to stabilise our balance sheet which has been adversely impacted by the pandemic," EOUK's Chief Financial Officer Satish Vasooja said in a statement.

Britain, which is preparing to hold the COP26 global climate summit in Glasgow in November, has seen drivers snarled in queues to fill their tanks and dozens of forecourts closed, with fuel prices reaching record levels. "The improved environment around margins gives us the confidence to continue to serve as one of the UK key fuel suppliers with a 16% market share," Vasooja added.

A post-Brexit shortage of truck drivers, exacerbated by a halt to truck-driving-licence testing during COVID lockdowns and people leaving the haulage industry, has sown chaos through supply chains, raising the spectre of shortages and price rises.

Essar Oil has said it still needed to pay 223 million pounds ($305 million) to HMRC by January. It said the new deal with HMRC was designed to fit with its revenues.

"Road fuel sales volumes from EOUKs Stanlow, Northampton and Kingsbury terminals over the last weekend (2526 September) were up 22% against a "normal" weekend (pre-Covid)," Essar said as many petrol stations saw long queues.

As per MRC, Essar Oil (UK) Ltd resumed a cracking unit at its Stanlow facility, which had previously been shut down due to a power outage. This cracking unit with a capacity of 45,000 tonnes of ethylene and 165,000 tonnes of propylene was shut down on 11 September, 2019 due to a power failure.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,396,960 tonnes in January-July 2021, up by 7% year on year. Shipments of all grades of ethylene polymers increased. At the same time, PP shipments to the Russian market were 841,990 tonnes in the first seven months of 2021, up by 29% year on year. Supply of propylene homopolymers (homopolymer PP) and block-copolymers of propylene (PP block copolymers) increased, whereas supply of statistical copolymers of propylene (PP random copolymers) subsided.
Author:Anna Larionova
Tags:petroleum products, crude oil, PP, PE, neftegaz, petrochemistry, Essar Oil UK Limited, UK, Russia.
Category:General News
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