New fuel marker to help tackle laundering
The British and Irish governments have announced the introduction of a new marker for rebated fuels, including off-road ‘red diesel’, as part of a bid to clamp down on illegal fuel laundering in both countries.
A joint press release by the Treasury and HMRC said the marker would make rebated fuel much more difficult to launder, which is normally achieved by filtering the fuel through chemicals or acids to remove the government marker.
The new marker, produced by the Dow Chemical Company, was shown to be significantly more effective than its predecessors, and resistant to known laundering techniques.
The use of rebated fuel is strictly prohibited except in specific circumstances including agriculture, construction and heating.
But the government estimates that the use of illicit diesel is around 12-13 per cent of market share in Northern Ireland, and about two per cent in the rest of the UK.
Treasury minister Nicky Morgan said: “Using illicit fuel is not a victimless crime; it robs the government of tax revenue that is used to fund vital public services and puts those businesses that follow the rules at a commercial disadvantage. It also has a severe environmental impact, with considerable clean-up costs for local councils.
“So we are boosting HMRC’s fight against this fraud by introducing a more robust marker, to ensure it is far harder to remove.”
The Freight Transport Association (FTA) strongly welcomed the move, saying it was sure the new marker would “go a long way to help” in the fight against fuel laundering – but added that “any chemical solutions to fuel laundering are ultimately prone to chemical counter-measures by fuel launders.”
Seamus Leheny, FTA policy and membership relations manager, Northern Ireland, said: “Fuel represents approximately 40 per cent of operating costs for transport operators hence legitimate operators in Northern Ireland are at a distinct disadvantage when competing against those that illegally use laundered diesel.”
FTA said it advocated accompanying measures including the removal of operator licences; confiscation and sale of vehicles found using laundered fuel or land on which laundering is taking place; and prison sentencing for those involved.
