Call for inquiry as UK refinery owner enters administration

The government has called for an investigation into the conduct of bosses at one of the UK's largest oil refineries after it collapsed into administration yesterday, prompting concern about job losses and disruption to fuel supplies.

- Rob Davies

Sources familiar with the situation said government officials had been growing increasingly fearful about the finances of State Oil, which owns the Prax Lindsey refinery in north Lincolnshire, since April.

The heavily lossmaking company assured ministers it was in good health during a meeting at the Prax site in May but is understood to have suddenly admitted in the past week that it was on the verge of insolvency.