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Workers at an under-threat oil refinery have accused ministers of “sitting on their hands”.

At a rally on Wednesday, members of the Unite union called for urgent action to secure the future of Lindsey Oil Refinery, which was taken over by the Official Receiver in June when Prax Group went into administration.

About 255 employees remain at the site in North Lincolnshire after 125 were told they would be made redundant this month. A jobs fair will be held in Immingham later to support them.

Speaking in the Commons, Energy Minister Michael Shanks said the government wanted to “support as much investment in that site as possible”.

Dave Smith, a Prax worker and union representative, said: “We’ve been asking the government for help and support – we know the country needs the fuel security, and yet they seem to be sitting on their hands.

“Everyone has been left scratching their heads wondering why we are in this position.”

Sub-contractor Anne Holmes, 63, said the site supported about 1,000 people, including those in the supply chain, and its closure would “a huge knock-on effect”.

“It’s not just the Prax employees, it’s the rest of us who work here as well,” she said.

“I’m an older person and I’m not going to get another job – this is it for me.”

Last week, an investment group expressed interest in joining forces with the government to buy the refinery.

In a debate in the House of Commons on Tuesday, Conservative MP Martin Vickers, who represents Brigg and Immingham, said the government “should be taking a more proactive role in determining the future of the refinery”.

He said “at least two investors” were “looking to take over the whole site” and asked whether the government would back this.

In response, Shanks said the Official Receiver was “considering a number of bids to make sure they are viable” and he would be happy to have conversations with Vickers on the subject.

Speaking at the rally, Sharon Graham, general secretary of the Unite union, said workers had been badly let down and urged the government to invest in green fuel production at the site.

“Ed Miliband again is missing in action, and we have a Labour government, and I’m sorry to say it, with absolutely no plans for the oil and gas industry,” she added.

The Insolvency Service said there were “ongoing discussions with a number of parties to progress bids with the objective of achieving a sale of the business”.

A jobs fair hosted by Grimsby Jobcentre was held at Immingham Civic Centre.

Representatives from British Steel, Myenergi, Humberside Engineering Training Association, Navigo and Associated British Ports attended the event, according to the Local Democracy Reporting Service.

Nick Gregory, the a manager at the job centre, said: “This is a very difficult time for those supply chain employees and their families and our hearts go out to them.”

The government has also offered a training guarantee designed to help workers find new employment.

Additional reporting by Ivan Morris-Poxton, Local Democracy Reporting Service.