The Coryton oil refinery plant in Essex is set to close putting up to 500 jobs at risk, administrators announced.
Price Waterhouse Cooper (PWC) today announced that the challenge of finding £625 million to fund the refinery near Canvey Island had proved too difficult.
It is expected that the process of closing the plant - which supplies 20 per cent of London and the south east's fuel will begin immediately and will take around three months, with large numbers of redundancies likely.
A spokesman for the Department of Energy and Climate change said: "Closure of the refinery reflects overcapacity in the European refining sector and... a number of refineries have closed across Europe in recent years," reports the BBC.
The owners of the plant, Petrolplus, filed for bankruptcy in January this year.