British Fuel Transport Company Axis Logistics Enters Administration as Prax Group Crisis Deepens

The transport division of the Prax Group’s £10 billion energy empire has collapsed into administration, marking another significant blow for the British husband-and-wife entrepreneurs’ business venture. Axis Logistics, responsible for transporting fuel from the Lindsey oil refinery to petrol stations across the UK, ceased operations after losing access to vital fuel supplies.

The crisis unfolded when the Lindsey oil refinery in Humberside was placed into administration by the government last week, effectively cutting off Axis Logistics’ primary fuel source. The Department for Energy Security and Net Zero has confirmed that while fuel deliveries have resumed, the official receiver is exploring various options, including a potential sale of the facility.

The collapse has resulted in 137 redundancies at Axis Logistics, which previously serviced not only Prax-owned petrol stations but also major customers including supermarkets and Newcastle airport. Industry sources reveal that tanker drivers were left stranded after being denied access to the refinery’s supplies following the government intervention.

Restructuring specialists Teneo, appointed to manage the Prax Group entities, confirmed the inevitability of Axis Logistics’ administration, citing operational challenges stemming from the wider group’s insolvency. The situation has been partially stabilised by Glencore’s agreement to maintain crude oil supplies to the Lindsey refinery during the taxpayer-funded insolvency process.

The downfall of Axis Logistics represents a dramatic turn for founders Sanjeev and Arani Soosaipillai, who built their empire from a single filling station in St Albans. Their acquisition of the Lindsey oil refinery from Total Energies for £167 million in 2021 marked the peak of their expansion but has since proven problematic, with the facility recording consistent losses and financial irregularities.

Questions surrounding the company’s financial oversight have emerged, particularly after KPMG’s withdrawal from auditing duties shortly before the collapse, with smaller firm PKF Littlejohn taking over the responsibility for scrutinising the group’s accounts.