Written answers

Wednesday, 17 December 2014

Photo of Gabrielle McFaddenGabrielle McFadden (Longford-Westmeath, Fine Gael)
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57. To ask the Minister for Finance the number of complaints of petrol-stretching in Counties Westmeath and Longford, received by the customs and excise service in each of the months since May 2014; the number which were investigated; the number which are ongoing in each county; and if he will make a statement on the matter. [48723/14]

Photo of Michael NoonanMichael 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, 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.

I am advised by the Revenue Commissioners that the numbers of complaints of this kind received by Revenue relating to counties Westmeath and Longford in the period since May 2014 is 10,comprised of 2in September, 3 in October and 5in November. 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

CountyMayJuneJulyAugustSeptOctoberNovemberDecember

(to 12th)
Westmeath 00002230
Longford 00000120


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 a file is being prepared for prosecution.

Following a series of further tests conducted by the State Laboratory, results indicated 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.

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 Deputy 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 on going 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.

In addition, 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 Deputy 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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