Written answers

Tuesday, 24 February 2015

Photo of Gabrielle McFaddenGabrielle McFadden (Longford-Westmeath, Fine Gael)
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230. To ask the Minister for Finance the number of cases of reported petrol stretching the Revenue Commissioners have detected, or received, since January 2014; the number of these cases that are in counties Longford and Westmeath; if anyone has been prosecuted in relation to petrol stretching; and if he will make a statement on the matter. [7839/15]

Photo of Gabrielle McFaddenGabrielle McFadden (Longford-Westmeath, Fine Gael)
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231. To ask the Minister for Finance if the Revenue Commissioners have established the possible motives behind petrol stretching; and if he will make a statement on the matter. [7840/15]

Photo of Michael NoonanMichael Noonan (Limerick City, Fine Gael)
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I propose to take Questions Nos. 230 and 231 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 consumer's 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. Petrol stretching involves the illegal addition of a low tax commodity to petrol, and the motive of the criminals who engage in this activity is to profit from the sale of the adulterated petrol, thereby defrauding motorists and the State. Revenue has received 135 complaints to date, the majority of which originated in Revenue's Border Midland West Region. The numbers of complaints relating to counties Longford and Westmeath are 3 and 7 respectively.

Every filling station about which a complaint was made has been visited by Revenue enforcement officers and fuel samples taken from them have been sent for analysis by the State Laboratory. Over 300 samples of petrol from filling stations and other sources have been referred to the State Laboratory.

The scientific analysis required is complex and time-consuming and the State Laboratory has conducted an extensive series of tests and re-tests on the samples. Despite this extensive testing, evidence of the presence of prohibited stretching agents has been found in only two samples, both from one location. The conclusive results received from those tests have resulted in the seizure of the product, and files are being prepared with a view to prosecution.

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

Revenue will also continue to work closely with An Garda Síochána and share information and intelligence with them on this issue.

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 documents and take samples of fuel for analysis.

I am satisfied that the Revenue Commissioners are taking all possible action to identify the problem and challenge any instances of identified fuel fraud, including, where possible, pursuing prosecutions against offenders.

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