Written answers

Wednesday, 10 December 2014

Department of Finance

Fuel Oil Specifications

Photo of Denis NaughtenDenis Naughten (Roscommon-South Leitrim, Independent)
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67. To ask the Minister for Finance the number of complaints of petrol-stretching in counties Mayo, Roscommon, Galway and Leitrim, received by the customs and excise service in each of the months since June 2014; the number which were investigated and the number which are ongoing in each county; and if he will make a statement on the matter. [47462/14]

Photo of Michael McGrathMichael McGrath (Cork South Central, Fianna Fail)
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68. To ask the Minister for Finance the steps being taken to deal with the issue of petrol stretching; if the Revenue Commissioners resources have been allocated to the problem; and if he will make a statement on the matter. [47474/14]

Photo of Michael NoonanMichael Noonan (Limerick City, Fine Gael)
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I propose to take Questions Nos. 67 and 68 together.

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, over the recent past, received reports from a variety of locations around the country of problems relating to petrol quality, and suggestions that these problems are attributable to petrol stretching.  Revenue investigates all complaints of this kind and Revenue officers have visited and taken samples from every filling station about which a complaint has been made about fuel contamination, and these samples have been referred to the State Laboratory for analysis.

In regard to the Deputies questions regarding complaints, I am advised by the Revenue Commissioners that the numbers of complaints of this kind received by Revenue in counties Mayo, Roscommon, Galway and Leitrim in the period since June 2014 is 72, comprised of 1 in July, 7 in August, 18 in September, 24 in October, 17 in November and 5 to 5 December 2014. An analysis of the complaints on a county basis is set out in the following table.  Enquiries into these complaints are on-going.

Complaints Received in Relation to Petrol Stretching

CountyJulyAugustSeptemberOctoberNovemberDecember (to 5th)
Mayo041012 *11 *3
Roscommon035412
Galway103850
Leitrim000000


I am advised by the Revenue Commissioners that the statistics provided to me in relation to complaints made  in Co. Mayo, and included in my reply to PQ No 45780/14 on 2 December 2014 were in fact incorrect, and that the correct figures are shown in the above table.  The Commissioners advise me that the error in the previous figures arose because of some duplicates in the Revenue database of complaints received, and because some complaints were attributed to the incorrect county. I am assured that these database errors have now been corrected and I am pleased to avail of this opportunity to amend the record.

Normally when 'fraudsters' attempt to stretch petrol, they add methanol, kerosene or other low excise duty agents. To-date 208 samples have been referred by Revenue to the State Laboratory for analysis. Despite extensive testing by the State Laboratory, no evidence of any prohibited stretching agent has been found in any of the samples, except two samples taken from one site.  The conclusive results received in that particular case has resulted in the seizure of the product and closure of the facility and a file is being prepared for prosecution.

Following a series of further tests conducted by the State Laboratory, results have been received in the last two weeks which indicate the presence of traces of road diesel in several samples taken from a variety of locations. This could indicate that petrol was contaminated with road diesel at some point in time. There is no rational economic reason or fraudulent incentive for anyone to deliberately mix normal road diesel with petrol. This contamination could have taken place earlier in the summer, well ahead of the problems manifesting themselves in cars in Co. Mayo and elsewhere.

If the problems that have come to light were caused by an unintended contamination as a result of diesel being inadvertently mixed into petrol at some point along the supply chain, there would be no Revenue offence involved. However, the Deputies can be assured that the Revenue Commissioners are vigorously investigating the possibility of tax fraud being associated with the identified problems. In any instances where the analysis of petrol samples by the State Laboratory indicates the presence of illegal stretching agents, Revenue will take swift and robust action and pursue prosecutions against offenders where possible.

I am also advised by Revenue that they undertake, on an ongoing basis, an extensive programme of compliance and enforcement actions to ensure adherence to the legal requirements governing the supply and sale of mineral oil and to allow action to be taken against fraud. This involves, among other things, carrying out analysis of the monthly oil movement returns that oil traders are required to make, and of other supply chain data. In addition, Revenue officers conduct control or compliance visits to mineral oil traders, during which they examine transport and movement documentation and take samples of fuel for analysis.

The Revenue Commissioners are working closely with An Garda Síochána and share information and intelligence on this issue.  Also, as part of Revenue's normal operating procedures, fuel delivery tankers are challenged when encountered by enforcement officers, particularly throughout the Border Midlands West Region.  No cases of contaminated petrol have been identified as a result of these checks from June 2014 to date.

I wish to assure the Deputies that I am satisfied the Revenue Commissioners  are allocating resources to this issue and taking  all possible actions to identify the problem and challenge any instances of identified fuel fraud including, where possible, pursuing prosecutions against offenders.

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