Ray Butler (Meath West, Fine Gael)

I thank the Ceann Comhairle for giving me the opportunity to speak on this important issue of fuel laundering. This problem was recently brought to my attention by several forecourt owners and a major petrol supplier in my constituency of Meath West who informed me that approximately 15 to 20 filling stations which closed and have since reopened are now selling laundered diesel. The same forecourt owners now state that their turnover on petrol and diesel has diminished significantly as a result of the availability of laundered diesel throughout Meath West.

Statistics given to me suggest that in Ireland alone there are 120 to 150 diesel laundering providers throughout the country costing the State a possible €200 million to €300 million in lost taxes per year. These illegal suppliers are selling the laundered diesel at a profit of 40 to 45 cent per litre and are selling petrol, which has been bought legitimately as petrol cannot be laundered in the same manner as diesel, at cost price. As they say in the business, petrol is a loss leader and is only a means to encourage customers onto their premises to buy the illegal laundered diesel and to spread the word among the general community that it is available for sale. This washed diesel is detrimental to the engine of any vehicle, rendering the engine useless if used over an approximate period of time, for example, 12 to 18 months.

The forecourt owners in my constituency have said that if this practice continues their business will fall under even more stress and it will eventually result in the loss of staff at the very least. Revenue and Customs officials are doing their best to address this problem but as soon as one illegal supplier is closed down another takes over the closed facility and the cycle of events commences again.

In the light of the evidence of the great extent of this illegal activity I sincerely hope that better control can be gained over this problem, whether by putting more dyes into the diesel or examining the possibility of having one form of diesel available in the market. Having spoken at length to the forecourt owners, business people and members of the general public in my constituency who have been directly affected by the effects of laundered diesel I urge that this matter be given further consideration by the Government and every effort made to eradicate the availability of this illegal laundered diesel.

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