Fleet operators across the United Kingdom are facing an uncertain future as Prax Group, a major fuel supplier, has collapsed into administration, raising fears of fuel shortages. On 30th June 2025, Prax Group entered administration, a move that has sent shockwaves through the fuel supply chain and left many businesses scrambling to secure alternative sources of fuel. This development threatens to disrupt operations and increase costs for the transport industry, with broader implications for the UK’s energy security.
Prax Group is a significant player in the UK’s fuel industry, owning approximately 200 petrol stations under the Breeze and Harvest Energy brands. The company also operates the Lindsey oil refinery in North Lincolnshire, which processes around 5.4 million tonnes of oil annually, accounting for nearly a tenth of the UK’s total refining capacity. Additionally, Prax Group has oil field interests in the Shetlands, making it a critical component of the island’s energy infrastructure. The company’s collapse, therefore, has far-reaching consequences for both the commercial and retail fuel sectors.
| Key Details of Prax Group | Description |
| Petrol Stations | ~200 stations under Breeze and Harvest Energy brands |
| Refinery | Lindsey oil refinery, North Lincolnshire (5.4M tonnes/year) |
| Other Assets | Oil field interests in the Shetlands |
| Employees | 625 across eight divisions in administration |
| Administrators | Teneo and FTI Consulting |
The downfall of Prax Group was precipitated by mounting financial losses, particularly at the Lindsey oil refinery. State Oil, the parent company of Prax Group, was forced to call in administrators on 30th June 2025, following a winding-up order issued against the Lindsey oil refinery and related businesses, including Prax Storage Lindsey Ltd. and Prax Terminals Killingholme Ltd.
Teneo Financial Advisory was appointed as the administrator for State Oil and several other divisions, while FTI Consulting was appointed as special manager for the Lindsey facility. Eight divisions of Prax Group, employing a total of 625 people, are now under administration, with the future of the company and its assets uncertain.
Clare Boardman, a joint administrator at Teneo, stated, “Options will be considered, including the prospect of a sale for the group’s upstream business and retail operations in the UK and Europe, all of which remain outside of insolvency.” This indicates a potential pathway for restructuring, but the immediate focus is on stabilising operations.
The collapse of Prax Group has immediate and severe consequences for fleet operators, who rely on consistent fuel supplies to keep their vehicles running. Harvest Energy, a subsidiary of Prax Group, has warned customers of “uncertain times” ahead. In a letter to fleet operators, Harvest Energy stated that trading would continue for a short period while administrators assess the viability of keeping the subsidiaries operational. However, new terms and conditions have been imposed, including stringent payment terms of just three days post-collection or delivery, and all outstanding amounts prior to 30th June 2025 remain payable.
This sudden disruption has left fleet operators in a precarious position. Many have long-standing relationships with Harvest Energy and now face the challenge of securing alternative fuel suppliers at short notice. The potential for fuel shortages could lead to increased operational costs, logistical challenges, and higher fuel prices as demand outstrips supply. For transport companies already grappling with economic pressures, this could be a significant blow, potentially leading to delays in deliveries and increased costs for consumers.
Government Investigation and Union Response
The UK government has expressed deep concern over the situation, recognising the strategic importance of Prax Group, particularly the Lindsey oil refinery, to the nation’s energy security. Energy Secretary Ed Miliband has called for an immediate investigation into the conduct of Prax Group’s directors and the circumstances leading to the insolvency. In a statement, Miliband emphasised the need to protect workers and ensure the continuity of fuel supplies, stating that the government is “closely monitoring the situation and exploring all options to mitigate the impact.”
Unite, the trade union representing many of the workers at the Lindsey refinery, has also called for urgent government intervention. General Secretary Sharon Graham described the refinery as “strategically important” and urged ministers to act swiftly to safeguard jobs and fuel supplies. “The government must step in immediately to protect workers and ensure that this vital asset continues to operate,” Graham said. The union’s concerns highlight the potential for significant job losses, with approximately 180 employees at State Oil and 440 at the refinery at risk.
Potential Liquidation and Future Outlook
The administration process is ongoing, with Teneo exploring all options, including the potential sale of Prax Group’s upstream business and retail operations in the UK and Europe, which remain outside of insolvency. However, the Lindsey oil refinery faces the grim possibility of liquidation.
Liquidators have been appointed for Prax Lindsey Oil Refinery Ltd., Prax Storage Lindsey Ltd., and Prax Terminals Killingholme Ltd., raising fears that the facility could cease operations entirely. If this happens, it would not only result in the loss of hundreds of jobs but also increase the UK’s reliance on imported fuel, posing risks to energy security and potentially driving up prices.
The potential liquidation of the Lindsey refinery is particularly concerning given its role in processing nearly a tenth of the UK’s fuel supply. A reduction in domestic refining capacity could lead to greater dependence on imports, especially following the recent closure of the Grangemouth refinery. This could exacerbate fuel price volatility and impact the broader economy.
The outcome of the administration process will be critical in determining the long-term impact on the fuel supply chain. If a buyer can be found for the refinery and other assets, it could stabilise the situation and prevent widespread disruption. However, if liquidation proceeds, the UK could face a significant reduction in domestic refining capacity, with far-reaching consequences for the energy sector and the economy at large. The potential for market consolidation also looms, as larger competitors may seize the opportunity to acquire Prax Group’s assets, potentially reducing competition and increasing prices for consumers and businesses.
The collapse of Prax Group into administration is a stark reminder of the fragility of the UK’s fuel supply chain. Fleet operators are now facing the prospect of fuel shortages, higher costs, and logistical challenges, while the government and unions are calling for urgent action to protect jobs and energy security.
As the administration process unfolds, the coming weeks will be crucial in determining whether Prax Group’s operations can be salvaged or if the UK will lose a vital piece of its energy infrastructure. The consequences of this event will be felt across the transport industry and beyond, highlighting the need for robust measures to safeguard the nation’s fuel supply in the future.
