18/07/2002

Fuel racketeering condemned by House of Commons

The House of Commons Public Accounts Committee has described the loss of business revenue to the UK exchequer through the sale of illicit fuel as a "scandal".

A report by the committee revealed that the exchequer was being cheated of a quarter of its income through the sale of illicit fuel at more than half the filling stations in Northern Ireland.

The report blamed paramilitary organisations for smuggling the fuel from the Republic. As a result of these losses, the report has called for Customs and Excise to develop its intelligence gathering operations against organised gangs in order to meet its target of reducing fraud to 2% by 2005-6.

The Committee revealed that duty totalling £380m a year is lost in the province because of petrol and diesel being brought across the border. In the Republic diesel is nearly 30p a litre cheaper and petrol is almost 20p a litre cheaper.

The report also said that up to 450 of the province's 700 filling stations are involved in selling illicit fuel, of which as many as 250 may be selling illegal fuel only.

(MB)

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