The UK Petroleum Industry Association (UKPIA) on behalf of its
manufacturing members welcomes the revised UK Global Tariff,
which secures competitive tariffs for the UK’s downstream oil
sector.
The Department for International Trade’s (DIT) announcement on
tariffs today means that UK manufacturers of oil products will
continue from January 1st 2020 to compete on
similar trade terms to international competitors, while
government looks to lower import tariffs overall.
Following the consultation on the UK Global Tariff (UKGT) by DIT
earlier in the year, government has published its revised tariff
regime for trade after 2020, which lowers import tariffs from
World Trade Organisation (WTO) rates, but continues to offer
tariffs that reduce the risk of disadvantaging UK refineries that
export.
UKPIA members1 - which supply 33% of the UK’s
energy needs annually including most of its petroleum products -
trade internationally, reflecting integration in a highly
optimised supply chain and the need to balance domestic supply
and demand. Any change to tariff rates can be expected to impact
companies differently, the revisions following consultation will
mean that the UK refineries will be protected, while future trade
negotiations will look to secure reciprocal tariffs at even lower
rates to provide a competitive fuel supply chain for both
importers and manufacturers that, historically, has been “good
for energy resilience, good for the economy and good for
jobs.”2
Director-General of UKPIA, Stephen Marcos Jones said, “It is
encouraging that government has listened to industry. We hope to
see reciprocal tariffs delivered through Free Trade Agreements,
particularly for our trade with the EU, but the changes delivered
by the UK Global Tariff should facilitate continuing and
hopefully growing international trade in the fuel sector.
By government supporting the UK’s manufacturing base as well as
reducing import tariffs from WTO levels, UKPIA is hopeful that
the sector will continue to adapt and work with government to
realise our shared Vision3 of delivering a low
carbon economy that includes a significant role for the
downstream oil sector.”
ENDS
- UKPIA represents eight oil refining and marketing companies
that operate the six major oil refineries in the UK and source
over 85% of the transport fuels used.
- Government “Review of the Refining and Fuel Import Sectors in
the UK” (2014).
- The UKPIA Future Vision (2019) report can be found
at https://www.ukpia.com/media/2230/ukpia-vision-july-2019.pdf
- The Government Response on the UK Global Tariff can be found
athttps://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/885943/Public_consultation_on_the_UK_Global_Tariff_government_response.pdf
