Chevron will be less competitive with the introduction of a new refinery tax, warn South Pembrokeshire’s Conservative politicians.
Industry experts say the new Renewable Heat Incentive (RHI) levy on fossil fuel supplies is double taxation which will make British refineries less competitive.
“We were told by the UK Petroleum Industry Association (UKPIA) that this new tax will have a detrimental impact on UK refineries,” said Conservative Parliamentary candidate Simon Hart.
“It is thought it will add $1 per barrel on refinery throughput which is hugely significant in terms of profitability.
“The UKPIA says that any such levy would greatly damage the competitiveness of UK refineries and their ability to attract the investment necessary to stay in business so this is a major threat to the saleability of Chevron.”
South Pembrokeshire AM Angela Burns added: “This is double regulation and double taxation which could damage Chevron’s competitiveness given the ease with which refined products can be imported.”
Mrs Burns has now asked the Welsh Assembly Government to come up with a package to encourage large employers such as Chevron to stay in Wales.
“What can the Government do when companies indicate that they may not be able to carry on and how can we intervene to provide help in certain areas?” she asked the Senedd.
“I know, from talking to Chevron, that transportation and the transport infrastructure is an issue that irks all of the energy companies in west Wales.”
