More than half of NI petrol stations sell illegal fuel

More than half of petrol stations in Northern Ireland are selling smuggled fuel, according to the latest UK Audit Office report.

The National Audit Office report, published on Friday February 15 shows that of the 700 filling stations in Northern Ireland around 400 to 450 are selling some illegal fuel, and up to 250 of them may be selling only illegal fuel.

The estimated loss of revenue from smuggled fuel in Northern Ireland the report finds, cost the exchequer £380 million in 2000.

Since 1999-2000 the amount of fuel seized by Customs in Northern Ireland has doubled and the number of vehicles seized involved in smuggling has more than tripled.

According to the report, Customs believe that the smuggling of fuel is a material problem only between the Republic of Ireland and Northern Ireland. This is because of the long land border, and the lower price of both diesel and petrol in the Republic of Ireland compared to the UK.

The report finds that sophisticated criminal groups with experience in smuggling have been capitalising on this distinction.

The Audit Office recommended that Customs and Excise should chemically mark all duty paid fuel in Northern Ireland in a bid to deter smuggling and fuel laundering.

The report's author Sir John Bourn said: "The estimated revenue losses from the misuse and smuggling of hydrocarbon oils duty reveal that growing sums of revenue are being lost through smuggling and the illegal use of rebated fuel. Customs have recognised this problem by producing a strategy to deal with the frauds and are developing that strategy further."

Sir John said that every effort must be made to combat a criminal activity which not only resulted in large amounts of lost duty but also posed threats to health and safety.

(AMcE)