Written answers

Tuesday, 7 October 2014

Department of Finance

Fuel Oil Specifications

Photo of Séamus KirkSéamus Kirk (Louth, Fianna Fail)
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165. To ask the Minister for Finance the measures that are being put in place to counteract petrol stretching fuel contamination; if his attention has been drawn to the serious financial implications for drivers who unwittingly purchase the product; and if he will make a statement on the matter. [37915/14]

Photo of Michael NoonanMichael Noonan (Limerick City, Fine Gael)
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I am advised by the Revenue Commissioners that they have received a number of reports of problems relating to petrol quality from around the country in recent weeks.  In general, such reports are followed up as a matter of course and samples sent to the State Laboratory for analysis where officers have reason to suspect Excise Duty fraud.  The recent reports of suspected petrol "stretching" are being investigated by the Revenue Commissioners who have been in contact with the Oil and Motor trade in this regard. 

Any illegal activity, such as petrol stretching, would be a matter of serious concern because of the risks to the Exchequer, the threat to legitimate businesses and the damage that can be caused to the vehicles of unsuspecting purchasers of adulterated fuel.  Section 102(1A) of the Finance Act 1999 makes it an offence to sell, deliver or use oil on which Mineral Oil Tax at the appropriate rate has not been paid.  In the normal course of work, Revenue's enforcement staff take samples of fuel from mineral oil suppliers, including filling stations, to ensure compliance with mineral oil regulations. These samples are sent to the State Laboratory for scientific analysis. If the results of the analysis reveals the presence of any illegal stretching agents, I can assure the Deputy that the Revenue Commissioners will take action and pursue prosecutions against offenders where possible.

Revenue and the oil sector have cooperated very successfully to tackle diesel laundering and I am confident that with this cooperation, and with the supply chain information available to Revenue, the problem of petrol stretching can also be tackled successfully. In this regard it is essential that petrol distributors report on any reduction in the pattern of legitimate supplies of fuel to the retail trade which may indicate that specific retailers are shifting some of their sourcing to laundered or 'stretched' fuel. 

Motorists themselves should take care about where they source their petrol from, and report any suspicions concerning the source of adulterated petrol that may have damaged their engines to Revenue. Revenue will investigate such reports and pursue prosecutions against offenders where possible. In that regard, Revenue has recently launched a dedicated section of its website specifically on the shadow economy and this includes an electronic reporting facility for anyone who has information about shadow economy practices such as petrol stretching.

The first point of contact for motorists whose vehicles have been affected should be the insurance companies they hold their policies with.  Further to that, those affected should also contact the point of purchase and seek redress through them.  If they remain unsatisfied they may have recourse to civil remedies and as such could seek legal advice.

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