Written answers

Wednesday, 28 January 2015

Photo of Denis NaughtenDenis Naughten (Roscommon-South Leitrim, Independent)
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50. To ask the Minister for Finance further to meeting the Minister of State and senior officials, the progress to date on investigations into petrol stretching; and if he will make a statement on the matter. [4022/15]

Photo of Denis NaughtenDenis Naughten (Roscommon-South Leitrim, Independent)
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52. To ask the Minister for Finance the number of complaints of petrol stretching received by Customs and Excise in each of the past seven months; the number which were investigated; the number which are ongoing; and if he will make a statement on the matter. [4024/15]

Photo of Michael NoonanMichael Noonan (Limerick City, Fine Gael)
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I propose to take Questions Nos. 50 and 52 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 fuel fraud.

Revenue has, since last summer, 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. The total number received to date is 134, and the numbers received in each month since July 2014 are set out in the following table.

Numbers received in each month since July 2014

July 2014August 2014September 2014October 2014November 2014December 2014January 2015
112283442116


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 scientific analysis. Despite extensive testing by the State Laboratory, evidence of a prohibited stretching agent has been found in only two samples, both taken from one site. The conclusive results received in that particular case resulted in seizure of the product and a file is being prepared with a view to prosecution.

Following a series of further tests conducted by the state laboratory, results were received which 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 mix normal road diesel with petrol. This contamination could have taken place well ahead of the problems related to fuel quality that manifested themselves in vehicles.

If the problems that have come to light were caused by unintended contamination resulting from diesel being inadvertently mixed with petrol at some point along the supply chain, there would be no Revenue offence involved. In any instances where the analysis of petrol samples by the State Laboratory indicates the presence of illegal stretching agents in petrol, Revenue will take robust action and pursue prosecutions against offenders where possible. Revenue will also continue to work closely with An Garda Síochána and to share information and intelligence with them on this issue.

I am also advised by the Revenue Commissioners 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. 

I am assured by the Revenue Commissioners that action on this matter continues to be a priority. They will, accordingly, take all possible steps to identify the problem, to challenge any instance of identified fuel fraud and, where possible, to prosecute anyone found to be involved in fraudulent activity of that kind.

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