Diesel Laundering Costing Exchequer €150m

It has been revealed that diesel laundering is costing the Exchequer €150m in tax revenue every year and that 12% of diesel sold in Ireland is illegal.

According to recent findings by Retail Ireland the sale of cheap diesel is seriously damaging public finances, funding criminality and harming the environment.

Meanwhile recent import figures would suggest that at least 12% of all diesel sold in Ireland is illegal.

The group has demanded more resources to enable garda and customs officials to tackle the illegal trade.

Retail Ireland Chairman and Topaz Retail Director Frank Gleeson said: "Rising prices have encouraged criminals to exploit the substantial difference in price between diesel intended for agricultural use and for road use. A very conservative estimate would suggest that diesel laundering costs the Exchequer €150 million annually and is becoming more of a problem due to the increasing price of legitimate diesel."

In a bid to alleviate the problem Retail Ireland has made a string of recommendations including equalising the duty rates for agricultural fuel and motor fuel and introducing a reclaim system for agricultural fuel users.

The group also said premises selling diesel should be subject to the same licencing requirements as petrol is under so that filling stations and sites selling illegal diesel can be closed and called for an increase in the penalties imposed on persons who engage in this criminal activity.

"The current fines are not a sufficient deterrent," said the group, "They are disproportionate to the vast profits being made."

Currently fines of €1,290 for offences have been recorded.

"There is a misconception that the majority of laundered fuel is only available in border counties. However, illegal fuel has been discovered in Galway, Roscommon, Westmeath, Offaly and Dublin. This suggests that the illegal fuel market is spreading in Ireland," concluded Mr Gleeson.

The Background

Diesel intended for use in the agricultural sector is marked with a green dye. Once marked, it is subject to lower excise taxes than those applied to diesel for road use.

However, those operating illegal laundering plants source agricultural diesel which they then launder to remove the dye. The dyed fuel costs approximately €0.70c per litre.

When the dye is removed, the diesel currently sells for approximately €1.30 to €1.35 per litre, which is 10c below the market price. This indicates the substantial profit margin for the criminals involved.

The most recent garda successes in catching those involved in the illegal trade include a bust at the beginning of the month in Glaslough, Co Monaghan when 40,000 litres of laundered diesel was seized.

(LB/BMcC)