Britain loses €600m in border smuggling
More than half the filling stations in the North are now selling fuel smuggled from the Republic, as the gangs take advantage of the big price differences between the two jurisdictions.
Diesel prices south of the border are typically around 45 a litre (38%) lower, a report from Britain's House of Commons Public Accounts Committee stated.
However, while the British taxman is losing duty totalling 590m a year in the North, the big winners are the Exchequer here, distributors, border filling stations and criminals.
Half of this total is thought to be due to legitimate cross-border shopping, but it is believed that around 295m is lost to smugglers.
Up to 450 of the North's 700 filling stations are involved in selling illicit fuel, of which as many as 250 sell illegal fuel only, the report stated.
Petrol and diesel are bought from legitimate distributors and the excise duty paid before it is brought over the border.
The Exchequer collects both on the cross-border trade and from the VAT receipts at point of sale in filling stations. There is also a market for rebated fuel, cheaper diesel meant for off-road agricultural vehicles that is then laundered and sold on for use in ordinary cars.
A spokesman for the Revenue Commissioners said no figures are kept on how much extra in tax receipts the treasury pulls in due to the cross-border trade or bulk sales. But the 600m is more than half of what was taken in last year in duty in the North.
Commons Public Accounts Committee chairman MP Edward Leigh said: "It is a scandal that in Northern Irelandone part of the UK, approximately half of all garages are selling only illicit fuel, which brings the tax system into disrepute. "However, customs cannot tackle this on their own.
"The involvement of paramilitary organisations, the general security situation and the risks of local unrest and disobedience require joined-up action across the various authorities involved and with the Northern Ireland Organised Crime Task Force."
The task force - made up of police and customs among others agencies - was set up two years ago. In a recent report, it claimed smuggled fuel was a particularly lucrative business for paramilitaries, particularly republicans.
It was claimed the IRA earns 12m a year while the dissident Real IRA raked in 8m from all activities. These figures were rubbished as 'widely exaggerated' by republican sources.
There is also a huge market for smuggled cigarettes with many legitimate retailers selling them under the counter.
There is more than 1 in difference in the price of a packet of 20.
