Retailers: 12% of diesel is laundered

PETROL retailers estimate that about 300 million litres of laundered diesel — or 12% of the total diesel market — is being sold in garages every year.

They say this is costing the state €155m in lost tax revenue and estimate that 120 sites are selling suspect fuel across the country.

The Irish Petrol Retailers’ Association claims that despite successes against illegal operators, such as Thursday’s operation across six counties, “little progress” was being made by the state in tackling the problem.

The group says this is due to the “limited manpower, finance and resources” available to Customs.

A sister body, the Irish Petroleum Industry Association (IPIA), backed the estimate of the state losing €155m. It said the illegal trade was making it “increasingly difficult” for the legitimate trade to compete.

The comments come as Customs and Garda probes continue into Thursday’s operation, during which a large laundering plant in Monaghan was smashed and seizures of laundered fuel were made at petrol stations in five other counties.

In total, more than 140,000 litres of laundered fuel was seized, bringing to over 300,000 litres the total amount uncovered this year, more than twice last year’s.

Customs estimate the Monaghan plant could launder 18m litres a year.

Garda and Customs sources estimate criminals earn about 50c on each litre of fuel laundered, suggesting a possible profit of €9m from this plant alone.