The Insolvency Service said on Tuesday that 125 jobs will be cut at the site by the end of October.
It will leave 255 workers at the oil refinery in North Killingholme, North Lincolnshire as the official receiver continues to seek a rescue deal for the business.
The Government’s official receiver took control of the operation, which is one the UK’s few oil refineries, after owner Prax Group collapsed into insolvency in June.
A spokeswoman for the Insolvency Service said: “This decision was not taken lightly and follows a thorough review of all aspects of the business, following its insolvency.
“We understand that this a very difficult time for all those affected by this decision, and the Insolvency Service will fully support…