Revenue rules ‘threaten rural fuel retailers’

Rural fuel retailers are being forced out of business by a range of stringent new licenses being introduced by Revenue to clamp down on illegal fuel.

The Convenience Stores and Newsagents Association has warned that 300 of their members will be pushed to the brink by the introduction of the new marked fuel traders licence and auto-fuel traders licence which will cost €250 each.

As well as the licenses, fuel retailers will be required to submit a mandatory monthly online return of oil movements. The return will include opening and closing stock balances, details of all oil purchases, and all sales for the licensed products.

The association’s chief executive, Vincent Jennings, said that the new requirements will have a drastic effect on retailers and the rural communities they support.

“The impact of these new revenue requirements will be felt not just by fuel retailers but also farmers and the greater rural community. We cannot believe they have proposed this solution without considering the additional financial and administrative cost associated with this new regime,” he said.

Under the new regime a marked fuel trader’s licence is required by traders who produce, hold, deal in, or deliver marked gas oil or marked kerosene from Oct 1, 2012.

An auto-fuel trader’s licence is required by traders who produce, sell, deliver or deal in, mineral oil (ie hydrocarbon oil, liquefied petroleum gas and substitute fuel) for use in an engine of a motor vehicle. This new requirement came into effect from July 1, 2012,

Traders who deal in auto-fuel products and marked fuel products require both types of licence. As well as a separate licence for each premises a trader operates.

A spokesperson for the Revenue Commissioners said the measures are designed to deter all opportunities for criminal activity in the fuel trade.

“The illegal trade in mineral oils constitutes a very serious threat to the exchequer, through the loss of revenue from mineral oil tax and other taxes.

“One of Revenue’s core strategies for 2011/2013 is to target and confront those who do not comply with their obligations under tax and duty law. In line with this strategy, Revenue is giving priority to business programmes and measures that are specifically focused on tackling the illegal trade in mineral oils,” the spokesperson said.

Last year the action by Revenue and the gardaí resulted in the closure of 32 filling stations between Jul and Dec 2011. There were also nine oil laundries detected, up from four in 2010.