If so it would be the third UK refinery in four years to face the axe and comes just weeks after a commodities conference warned that "five to six" European refineries face extinction in the next few years due to the flood of cheaper imports from the US, Asia and the Middle East.
Scotland has just one refinery, the Grangemouth plant, which supplies fuel to Scotland, Northern Ireland and the north of England. If it were to close, the nearest alternatives would be in the English Midlands - the Essar Stanlow plant in Cheshire, the Total-owned Lindsey refinery in North Lincolnshire, or the Phillips 66 facility on the banks of the Humber estuary.
So far the UK Petroleum Industry Association (UKPIA), the body which represents the refining industry, is refusing to contemplate this "doomsday scenario".
A spokeswoman for UKPIA said: "Europe has over-capacity of gasoline supply which has led to experts warning a few European refineries could close down but PIA doesn't want to see that happening in UK. UK refineries are much more competitive and complex than their European counterparts so we would have a stronger case for investment anyway."
UKPIA also claims that the Grangemouth refinery has been continuing to operate, albeit "not at maximum capacity", despite statements from Ineos that the refinery has been in shut down mode since last Thursday.
The core of the problem for the UK and European refiners is global over-capacity of petrol. UK plants built 30 to 50 years ago were geared to manufacturing petrol, but now produce an excess while the UK relies on making up a shortfall in diesel and jet fuel through imports from Russia and the Middle East.
Correcting the imbalance would cost each refinery an estimated £800 million - unaffordable against the £11.4 billion bill hanging over the industry if it is to meet its environmental targets by 2030.
So far fuel supplies have been unaffected by the drama at Grangemouth and closures of other regional refineries - the Coryton facility in Essex ceased refining last year and now only operates as a storage and distribution terminal for fuel - haven't resulted in forecourt supplies drying up. It is possible Grangemouth could also be converted into a terminal.
Short-term contingency plans are in place if the crisis continues but the Petrol Retailers' Association (PRA) said the industry has already responded well.
Brian Madderson, chairman of the PRA, said: "The PRA issued early advice to forecourts suggesting they gradually increase holding stock levels and we believe that this has been heeded in most areas.
"It is also clear that motorists have maintained their usual buying patterns as there have been no signs of the "panic buying" which caused so much distress to consumers and businesses in March 2012.
"Our advice is that the third party storage terminals in Inverness, Aberdeen, Clydebank and Grangemouth are all operating normally and are well-stocked with road fuels. Supplies can also be quickly obtained from terminals near Carlisle and Teesside."
If it wasn't coming out of Grangemouth, fuel could still travel to Scotland via tanker, ship and pipeline.
Contrary to some scare stories, the closure of the Grangemouth refinery alone would be unlikely to provoke a surge in fuel prices which are generally dictated by overall supply levels to Europe.
Nonetheless, the AA has raised fears about the long-term impact, warning that Grangemouth is a symptom of a wider malaise within the industry and that a series of closures across Europe could impact on prices.
One unanswered question is the potential impact on BP-owned Forties pipeline and its Kinneil processing facility, which is powered by Grangemouth. The Forties pipeline carries oil direct from the North Sea to the Cruden Bay terminal in Aberdeenshire before transferring it south to Kinneil. When a previous strike closed the Grangemouth refinery in 2008, BP were forced to close the pipeline - which supplies around 30% of the UK's oil - and Kinneil. As a result, 70 North Sea oil platforms were also forced to shut down or cut production, at the cost of 700,000 barrels per day.