Refining capacity Although the UK refining sector remains robust - currently possessing the 6th largest refining capacity in Europe - the ageing infrastructure and a decrease of refining capacity during the pandemic have continued the importance to the UK of imports of oil products in meeting the UK’s domestic demand. Despite the UK utilising its refining capacity at 91% in 2022, imported oil products accounted for 52% of the oil products delivered for UK domestic consumption. Duty + VAT A significant reduction in fuel duty of 5p per litre was introduced by the Treasury in March 2022 to ease financial pressures for consumers. Despite the tax cut, total government fuel tax receipts were at their highest ever and surpassed pre-pandemic levels due to the surge in VAT revenue of 28.5%, which resulted from higher fuel prices. Decarbonisation 2022 saw the continued effort of the UK fuel sector to reduce emissions through planned investments in low-carbon technologies such as Renewable fuels, Hydrogen, SAF, and CCUS. The inclusion of our members in Industrial Clusters across the UK greatly boosts the effectiveness and cost efficiencies of these technologies, from ExxonMobil in the Solent Cluster in the South to Petroineos in the Acorn Cluster in Scotland. Biofuel use, which on average has an overall greenhouse gas saving of 82% compared to fossil fuel counterparts, also saw continued uptake, led by the increasing targets outlined in the Renewable Transport Fuel Obligation. China is currently the largest source of renewable fuel feedstock, accounting for 25% of the share, with much of the imports as used cooking oil. Used cooking oil overall accounts for 55% of all biofuel feedstocks used in the UK and is used to produce 93% of UK biodiesel.
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Fuels Statistics 2023
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