Peadar Tóibín (Meath West, Sinn Fein)
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60. To ask the Minister for Finance the role customs and excise have in the stretched fuel crisis that is currently affecting the midlands and western part of the country; if there is an investigation being carried out by his Department; if customs and excise are accepting evidence from garages with regards this crime; his views on the creation of a fund to help those who have had their vehicles damaged. [38371/14]

Michael Noonan (Limerick City, Fine Gael)
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I am advised by the Revenue Commissioners, who are responsible for tackling fuel fraud, that they are very aware of the risks posed to consumers' vehicles, legitimate businesses and the exchequer by all forms of such fraud. Revenue has made great progress in tackling the problem of diesel laundering over the past three years, and reports now indicate the emergence of another form of fuel fraud, commonly referred to as petrol stretching. This involves the illegal addition of a low tax commodity to petrol to defraud the exchequer and the motorist.

Petrol stretching is an offence under section 102 (IA) of the Finance Act 1999. It carries a penalty on summary conviction of a fine of €5,000 or a term of imprisonment not exceeding 12 months, or both a fine and imprisonment. Where conviction occurs on indictment, a fine of up to €126,970, or a term  of imprisonment of up to 5 years, or both a fine and imprisonment, may be imposed.

I am advised by Revenue that they are investigating the recent reports concerning petrol stretching and that they have been in contact with the motor and oil trades. I understand also that they have taken samples from a number of filling stations that it has been claimed may have been sources of adulterated fuel, and that they will undertake any further enquiries that are required as a result of reports or information that they receive. These enquiries will seek to establish if there is evidence that petrol stretching has occurred, and whether there is evidence to support a prosecution. The analysis of petrol samples is time consuming and results for the samples recently taken is awaited.

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. It is essential that petrol distributors report 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 and report to Revenue any suspicions concerning the source of adulterated petrol that may have damaged their engines. Revenue will investigate such reports and pursue prosecutions where possible. In that regard, Revenue has recently launched a dedicated section of its website specifically on the black economy and this includes an electronic reporting facility for anyone who has information about shadow economy practices including  petrol stretching.

I would also like to advise the Deputy that 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.