Retail Ireland, the IBEC group that represents the retail sector, has called for tax reform and a better resourced Garda and Revenue response to illegal diesel laundering. The group said at least 12 percent of all diesel sold in Ireland is illegal, costing the State €150m a year.
Retail Ireland Chairman and Topaz Director Frank Gleeson said rising prices have encouraged criminals to exploit the big difference in price between diesel intended for agricultural use, and for road use. In a submission, Retail Ireland have asked the Government to equalize the duty rates for agri fuel and motor fuel to stop the illegal fuel trade as lower taxed fuel wouldn't be available. They also want the introduction of a reclaim system for agri fuel users, and a robust marker to be introduced to agri gas oil that makes it easily detected by Revenue as well as the traceability of fuel from port to forecourt.
A further negative knock-on effect for legitimate forecourt retailers is their stores suffer as fewer customers enter the premises. The consequence is fewer hours worked, job losses and in some cases business closures.
Retail Ireland want filling stations and sites selling illegal diesel to be closed down. Apart from border counties, illegal fuel has been found in Galway, Roscommon, Westmeath, Offaly and Dublin which suggests the illegal fuel market is spreading.
