Denis Naughten
Question:19. Deputy Denis Naughten asked the Minister for Finance the progress made to date in investigations into petrol stretching; and if he will make a statement on the matter. [4607/15]
View answerWednesday, 4 February 2015
Questions (19)
Written answers
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.
Over the past number of months the Revenue Commissioners have received reports from a variety of locations around the country of problems relating to petrol quality, with suggestions that these problems are attributable to petrol stretching. Petrol stretching involves the illegal addition of a low tax commodity to petrol to defraud motorists and the State. Revenue has received 134 complaints to date, the majority of which originated from the counties covered by Revenue's Border Midland West Region.
Every filling station about which a complaint was made has been visited by Revenue enforcement officers and fuel samples taken from them were sent for analysis by the State Laboratory. To date, samples have been taken from over 50 filling stations nationwide and 300 samples, from them and from 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 on the samples. Despite this extensive testing, evidence of the presence of prohibited stretching agents has been found in only two samples from one location. The conclusive results received from those two samples 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 deliberately mix normal road diesel with petrol. 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 speedy and determined action and pursue prosecutions against offenders where possible.
Revenue have been working closely with An Garda Síochána in this investigation, sharing information and intelligence, and will continue to do so. 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.
I am satisfied that the Revenue Commissioners are taking all possible actions to identify the problem and challenge any instances of identified fuel fraud, including, where possible, pursuing prosecutions against offenders.