Fuel Market Update – September 2025
As we head into autumn, both farms and businesses are gearing up for the change in the seasons while domestic heating oil users begin preparing for colder months ahead. This makes it a good time to reflect on what is happening in the wider fuel market, how prices are moving, and what recent developments in UK refining mean for customers.
Market Trends
Global oil prices have been relatively steady through September, with Brent crude trading in the mid-$60s per barrel. This represents a slight easing compared to earlier in the summer, as softer demand outlooks and additional pipeline flows have helped balance the market. For UK buyers, however, volatility is still a theme. Because oil is traded in US dollars, the strength of the pound also plays an important role in determining wholesale diesel, gas oil, and kerosene costs. Even modest shifts in exchange rates can quickly ripple through to farm, business, and household budgets.
The Collapse of Prax Lindsey Oil Refinery
One of the most notable industry stories has been the collapse of the Prax Lindsey Oil Refinery in North Lincolnshire. The site entered insolvency at the end of June after months of financial difficulties, and by July it was moving towards closure. In early September, the High Court froze £150 million of assets linked to the owner, further underlining the seriousness of the situation.
The refinery once represented around ten percent of UK refining capacity, and its closure has prompted wider concerns about domestic energy resilience. Several Prax-associated storage and terminal businesses have also entered liquidation, meaning certain supply points may face reduced capacity or temporary suspensions.
What This Means for Rix Petroleum Customers
While the Prax story has raised understandable concerns across the market, we want to reassure our customers that Rix Petroleum’s supply chain has not been affected, and throughout this uncertain period we have maintained a steady and reliable flow of fuel.
For farms and businesses, this means continuity of supply during a busy autumn season. While some in the industry may be facing tighter logistics, our customers continue to benefit from consistent bulk fuel deliveries for gas oil, diesel, and heating oil. In addition, with winter fuel coming into supply mid-October, we also offer a solution for customers who would like their fuel winterised earlier. This gives businesses and farms peace of mind that their operations remain protected against cold weather, even before the seasonal grade becomes available.
For domestic users, our kerosene supply remains strong, allowing households to order with confidence as they prepare for colder weather.
Looking Ahead
The months ahead will be shaped by a combination of global and domestic forces. Internationally, crude oil prices will continue to respond to OPEC+ production decisions, shifting demand patterns, and geopolitical developments. Closer to home, the closure of the Prax refinery has made headlines, but our customers can be reassured that Rix Petroleum is not exposed to this disruption.
Whatever happens in the wider market, we are here to keep your fuel supplies steady. We will continue to monitor developments closely and share monthly updates, so you always know what is happening in the fuel market and what it means for you.
