Fleet operators are bracing for fuel shortages, following the collapse of major fuel supplier Prax Group.
Subsidiary Harvest Group, which supplies commercial customers, has warned fleet operators that the company is in “uncertain times” as administrators consider whether it can be kept afloat.
Prax Group, which went into administration yesterday (30 June) has oil field interests in the Shetlands and owns around 200 petrol stations, through its Breeze and Harvest Energy brands, as well as the Lindsey refinery in North Lincolnshire.
A separate winding-up order has been issued against the Lindsey oil refinery and its related businesses.
Teneo have been appointed as administrator. The eight divisions of Prax Group that are in administration employ a combined 625 people.
Fleet operators are already being caught in the slip stream of Prax Group’s failure. Its subsidiary Harvest Energy, which supplies fuel to the commercial and retail sector, has already written to operators to warn them of the “uncertain times” the company faces, as the joint administrators look at whether they can prevent the company and other Prax Group’s subsidiaries from going under.
In a letter to customers, seen by MT, the company states: “As you may or may not be aware, as of the 30/06/2025 the Prax Group (Harvest Energy’s parent company) was entered into administration.
“As you can imagine these are uncertain times for us, however the administrators are working to steady the ship for the time being and we will have more information in the coming days / weeks once we have a clearer idea of how we move forward.”
The letter adds that the joint administrators appointed over Prax Group will be contacting customers with “full details of the terms under which trading may continue and will require your confirmation before any further sales or orders can be fulfilled”.
It also informs customers that trading will continue “for a short period” while the joint administrators look at whether they can keep Prax Group’s subsidiaries, including Harvest Energy afloat.
It adds: “As part of this process, new terms and conditions will be provided within the forthcoming letter, and it will be necessary for you to review and confirm acceptance of these terms should you wish to continue trading.
“We kindly stress the importance of reviewing the contents of that communication promptly and responding as soon as possible to avoid any disruption to supply.”
It also warns customers to that any outstanding amounts owed for goods or services provided prior to the date of the administrators’ appointment remain payable.
It adds: “Going forward, payment terms will be set at three days following the collection or delivery of goods or services.”
Teneo joint administrator Clare Boardman said all options would be considered, including a sale of Prax’s upstream business and retail operations in the UK and Europe, all of which remain outside insolvency.
The government has raised concerns about the sudden collapse of Prax Group, particularly as ministers visiting the site of the refinery in May were assured that the company was solvent.
Energy secretary Ed Miliband has confirmed he is writing to the Insolvency Service to demand “an immediate investigation into the conduct of the directors, and the circumstances surrounding this insolvency”.
Sharon Graham, Unite general secretary, said: “The Lindsey oil refinery is strategically important, and the government must intervene immediately to protect workers and fuel supplies.”
