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Refinery shutdown moves forward Refinery strike price hike fears
(40 minutes later)
The shutdown of the Grangemouth oil refinery is continuing despite negotiations to halt a two-day strike due to start on Sunday. Planned strike action at a Scottish oil refinery should not lead to an increase in the price of fuel at the pumps, a senior petrol industry figure has said.
Operators Ineos began a scaled shutdown of the plant on Monday. Workers at the Grangemouth refinery are in talks with management from Ineos in a bid to head off the two-day stoppage.
The company is currently in last ditch talks with the Unite trade union over changes to its pension scheme. Chris Hunt, director general of the UK Petroleum Industry Association (UKPIA), made his comments as prices were increased at some petrol stations.
Falkirk Council warned residents in the area not to be alarmed by additional flaring from the plant over the next 48 hours, as it continued to shut down. One outlet in Kirkcaldy, Fife, was charging £1.30 for a litre of diesel.
The Central Scotland Strategic Co-ordinating Group (SCG), whose members include the local authority, Sepa and Central Scotland Police, said they were working with Ineos to ensure there was "minimum disruption" to the local community. Crude oil
In a statement the group said: "Flaring often takes place on site as part of the routine shutdown programme to safely disperse some of the by-products found in the petro-chemical industry. There has been long queues at many petrol stations, with some running out of fuel.
"Members of the public should not be alarmed by virtue of this increased activity, which is administered under strict safety procedures." On Monday it seemed to be isolated to the south west of Scotland but now we are getting reports of red diesel shortages and price increases from the north and north east of the country as well NFU Scotland Mr Hunt said Grangemouth had plentiful fuel stocks to cater for consumers should the industrial action go ahead.
There are signs the dispute is putting growing pressure on commercial fuel consumers. He said: "Grangemouth is a UK refinery processing crude oil into finished petroleum products; it therefore has no effect on internationally traded crude oil, which ultimately forms the basis of prices at the pumps.
Ferry operator Caledonian MacBrayne had feared some of its services would be affected as it moved to conserve fuel. He added that some petrol stations had run out of fuel but this was due to panic buying.
However, the company have now said it has secured fuel supplies and that services would be unaltered. Douglas Robertson, chief executive of the Scottish Motor Trade Association, said that if a garage suddenly put its prices up by four or five pence it would suggest profiteering.
Scotrail, which gets all of its fuel from Grangemouth, said it was monitoring the situation closely. Up to 1,200 Grangemouth workers are due to walk out on Sunday and Monday.
The National Farmers Union in Scotland also said its members were being hit by the dispute.
A spokeswoman said: "This does seem to be a problem that's increasing as the days go by.
"On Monday it seemed to be isolated to the south west of Scotland but now we are getting reports of red diesel shortages and price increases from the north and north east of the country as well."
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Round-up of fuel availability across ScotlandRound-up of fuel availability across Scotland
As the prospect of strike action grows nearer, contingency plans are being put in place across the country.
Governments on both sides of the border have urged the two sides to continue negotiations in a bid to avert the strike.
They have also warned the public against panic-buying fuel in fear of supplies running short.
The strike was voted for in response to plans by Ineos to end its final salary pension scheme for new workers and to make other changes.The strike was voted for in response to plans by Ineos to end its final salary pension scheme for new workers and to make other changes.
These included the introduction of contributions to the pension scheme from the workers.These included the introduction of contributions to the pension scheme from the workers.
Ineos said it had made a number of concessions to the union which it said represented a "significant improvement" on its initial proposals.Ineos said it had made a number of concessions to the union which it said represented a "significant improvement" on its initial proposals.
But officials at Unite said there was nothing new in the company's statement, adding that the union continued to press for the proposals to be withdrawn. Talks at the conciliation service Acas are now well into their second day.
Legal action Operators Ineos began a scaled shutdown of the plant on Monday.
After more than five hours of talks at Acas on Tuesday, union officials and Ineos managers resumed their negotiations on Wednesday. Falkirk Council warned residents in the area not to be alarmed by additional flaring from the plant over the next 48 hours, as it continued to shut down.
The bitter row which preceded the talks has resulted in Ineos taking legal action over comments made by union officials.
The company said Unite had claimed that Ineos had stripped £40m from the Grangemouth pension fund.
"This is an extremely serious allegation and is completely untrue," an Ineos statement said.
As the talks in London continued, the deputy general secretary of the Scottish Trades Union Congress, Dave Moxham, insisted that what Unite union members were calling for was realistic.
He told BBC Scotland's news website: "Final salary pension schemes are not unrealistic - they are what every employer should aim to provide.
"Why is it unrealistic, in the view of some employers and right wing commentators, that workers should expect a comfortable retirement after a lifetime of hard work?
"Furthermore, Ineos is an immensely profitable company."