Egan calls for proper policing of fuel laundering

Stephen Egan, who will be running for Fianna Fáil in the forthcoming local elections

Fianna Fáil local election candidate for Dundalk South, Stephen Egan, is calling on the government for proper policing of fuel laundering.

Reacting to the number of toxic diesel sludge that has been dumped in the area in recent times, the Blackrock man called on the government to intervene to prevent the illegal fuel trade from prospering.

“What we are currently seeing is actual ‘fuel arbitrage’.  As an ex-currency trader, arbitrage is basically buying a product in one market and selling it at a higher price in another market. It could be anything from apples to fuel.

“When you eliminate the arbitrage possibility by equalising the price of the product you are trading through either government intervention or market forces, arbitrage will cease. There needs to be an equalisation of the price of green and red diesel. This will eliminate the arbitrage and thus the trading in red versus green diesel as all profits from the trade will be eliminated,” explained Mr Egan.

“Price equalisation is the ideal system or having users of green diesel pay the VAT up front and then claim it back. The price would not necessarily have to be the same; just close enough so that the cost to the launderers of actually laundering would mean they wouldn’t make a profit. The price could be €1 to €1.03 or €2 to €2.03.

“It has been difficult to obtain prosecutions on fuel laundering from the legal perspective. Having spoken to people about this, it appears the whole business is operated like a franchise. Those with executive power in the criminal infrastructure sell or lease all the chemicals and equipment to franchisees, which are responsible to the actual laundering.

“Garda resources and time are being diverted to policing the current fuel situation- this time be better spent if better government policing of the fuel situation in its entirety be a more effective method of sorting the current fuel problem,” said Mr Egan.

Dundalk registered fuel company fined €5,000 for selling washed diesel in Limerick

A fuel company with a registered address in Dundalk has been fined €5,000 euro for selling washed diesel to unsuspecting motorists in Limerick.

NR Filling Station Limited had pleaded not guilty to the charge at St Anne’s, Pennywell on the Dublin Road in Limerick on July 12th 2011.

The station, which traded under various names, closed down shortly after the inspection.

Revenue official Linda Ryan gave evidence of taking six samples of fuel from two separate pumps on July 12th 2011.

Analysis of two of the samples carried out the following month showed the presence of Blue Anthraquinone, which is one of two markers indicating so-called green diesel.

The court heard that Revenue had difficulty in finding out the owners of the station, which traded under various names.

Subsequent investigations found the company has a registered address at Newry Road, Dundalk, County Louth with Paul Nolan and Sean Doolan as directors.

Judge Eugene O’Kelly rejected an application to throw out the case due to a question mark over the chain of evidence between when the samples were taken and analysed.

Judge O’Kelly imposed the maximum penalty of €5,000, commenting on the significant risk of mechanical damage to the cars of unsuspecting motorists who bought the fuel.

He added that he did not feel it appropriate to give mitigation as the company contested the case and no directors were present in court.