A marker against fuel fraud

THE Freight Transport Association of Ireland (FTA Ireland), has welcomed the announcement by the UK and Ireland governments that they are to introduce a marker that will help tackle fuel fraud.

This has to be good news to help reduce fuel laundering,” the organisation general manager, Neil McDonnell said.

The product will be used to mark rebated fuels, including the off-road diesel commonly known in the UK as ‘red diesel’, in a move that will boost both countries’ fight against illegal fuel laundering. The marker will help HM Revenue and Customs (HMRC) and the Irish Revenue Commissioners tackle the criminal market in off-road diesel, marked with a red dye in the UK and green in Ireland, and also kerosene primarily used for heating oil.

Neil McDonnell commented, “FTA welcomes any effort such as this to tackle fuel laundering. The costs of fuel laundering to the exchequer, to fair competition, to the environment are simply too high, and are not being addressed adequately.”

The UK’s Revenue and Customs has reported that it is stepping up its fight against fraud, stating that the new marker will make rebated fuel much harder for fraudsters to ‘launder’ and sell on at a profit. The new marker is far harder to remove.

“Fuel can represent up to 40 per cent of operating costs for transport operators. Legitimate operators in the Republic are at a massive disadvantage when competing against those that use laundered diesel,” Mr McDonnell said.