Ford highlights new marker testing in fight against diesel laundering

Justice Minister David Ford today got ‘hands on’ with the new roadside fuel testing equipment being used to tackle trade in laundered diesel.

Ford highlights new marker testing in fight against diesel laundering

The Minister was visiting an HM Revenue and Customs (HMRC) roadside checkpoint in Belfast where the hi-tech equipment was being used to test fuel in vehicles for the presence of a new marker resistant to laundering techniques used by criminal gangs.

David Ford, who is chair of the Organised Crime Task Force said: “Illicit diesel is estimated to make up 8 percent of the market share of diesel in Northern Ireland and costs the taxpayer around £50 million each year in lost taxes. The new marker, which was introduced last year, has significantly improved HMRC’s capability of detecting this laundered fuel. This is a huge step forward against tackling this type of crime.

He added: “Criminals who continue to attempt to launder fuel also generate large quantities of waste by product which is toxic and requires costly processing before it can be disposed of. It presents real dangers to people, animals, wild life and water courses if it is dumped carelessly. There is also a significant cost to the public purse to clean up not only the waste but also to address any contamination issue.

“I would urge anyone buying fuel to think seriously about where they are buying it. They could be funding other forms of organised criminality such as drugs and people trafficking. If they are caught using this fuel they could also face prosecution and a heavy fine.”

Pat Curtis, National oils lead, Fraud Investigation Service, HMRC, said: “Since the launch of the new marker we have seen a significant reduction in the detection of laundering plants and dumping of waste material associated with laundering activities. For the year 2014-15 a total of 35 plants (27 in Northern Ireland) were detected. For the period April to December 2015 only 18(12 in Northern Ireland) have been detected.

“While we are still in the evaluation process, the new marker has led to considerable operational success and the limited data points to a shift away from illicit laundering.”

HMRC will continue to monitor the success of the new fuel marker, to make sure it is delivering results in the fight against fuel fraud. The new equipment is being installed in all of HMRC's fleet of 49 Road Fuel Testing Unit vehicles throughout the UK and used to analyse fuel samples taken at the roadside and at filling stations.

Notes to editors: 

1. From 1 April the UK has introduced a new fuel marker which is significantly more resistant to laundering than the current markers.
2. HMRC fights fuel fraud on a wide range of fronts, from specialist units performing thousands of roadside checks to raiding laundering plants. This new marker and new roadside analyser will be vital tools in the continuing fight against fuel fraud and organised crime.
3. During a rigorous joint UK/Ireland evaluation, the chosen marker proved significantly more effective than the previous markers on the basis of laboratory testing. This testing found that it was highly resistant to known laundering techniques.
4. HMRC is introducing new road side analysers to its Road Fuel Testing Unit (RFTU) vehicles. The new analysers have been successfully fitted to 15 vehicles, 4 of which are currently operating in Northern Ireland. The analysers are being rolled out to the entire UK RFTU fleet of 49 vehicles in early 2016.
5. Launderers primarily target red or green diesel, filtering it through chemicals, including acids, to remove the marker. These remain in the fuel and can damage fuel pumps in diesel cars. As a result of these laundering activities, and overarching enforcement issues HMRC sought to introduce a new marker that was more resistant to laundering.
6. Although red diesel is predominantly targeted, launderers may also seek to remove the marker from other rebated fuels – especially kerosene primarily used for heating oil.
7. For UK red diesel, excise duty is charged at 11.14 pence per litre instead of the full rate of 57.95ppl. Excise duty on kerosene, used for heating, (which also has the marker added to it) has a zero duty rate. Rebated fuel is marked with dye and chemical markers so that its use for any other purpose, or illegal sale, can be identified.
8. For all media queries, please contact the DOJ Press Office on 028 9052 6444. Out of office hours please contact the Duty Press Officer via pager number 07699 715440 and your call will be returned.

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