Grangemouth oil refinery has been shutdown by operator Ineos until a shareholder review on Tuesday, despite an announcement earlier today by Unite that planned industrial action at the site had been called off.

The refinery had been in a phase of winding down for closure ahead of the strike this weekend known as "cold shutdown".

However, a statement just released by refinery owner Ineos states: “Grangemouth is shut down and will remain shut down.

“Grangemouth is financially distressed. The industrial action called by Unite the Union has inflicted significant further damage on the company.

“Ineos will put a proposal to the workforce tomorrow and expects a response on Monday, after the weekend. The company will review its position with its shareholders on Tuesday.”

Ineos and Unite have been embroiled in a dispute centred around Grangemouth employee Stephen Deans, who was suspended by the company following the dispute about the selection of a Labour candidate in Falkirk, where he is chairman of the constituency party.

Labour cleared Unite after an investigation. Although Deans was later reinstated he faces an internal inquiry by his employer. Following several days of ACAS-led talks, both parties failed to reach an agreement, but Unite called off the threat of industrial action at the site.

The likes of DHL and several other operators access the refinery site day-to-day normally, and

a number of commentators, including Petrol Promise's Robert Halfon MP, could push UK pump prices up, especially in Scotland.