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Petrol Stretching

Dáil Éireann Debate, Thursday - 12 February 2015

Thursday, 12 February 2015

Questions (72)

John O'Mahony

Question:

72. Deputy John O'Mahony asked the Minister for Finance the number of complaints of petrol-stretching in counties Mayo, Roscommon, Galway and Leitrim received by the Revenue Commissioner's customs and excise section since July 2014 to date in 2015; the number which were investigated; the number which are ongoing in each county, in tabular form; and if he will make a statement on the matter. [6507/15]

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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.

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 of complaints of this kind received by Revenue in counties Mayo, Roscommon, Galway and Leitrim during the period from June 2014 to date is 78. A breakdown of these complaints on a county basis is set out in the following table.

County

Number

Mayo

43

Roscommon

17

Galway

17

Leitrim

1

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. 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 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. 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 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 in petrol, Revenue will take swift and 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 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 action to identify the problem and challenge any instances of identified fuel fraud, including, where possible, pursuing prosecutions against offenders.

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