The product will be used to mark rebated fuels, including the off-road diesel commonly known in the UK as "red diesel", in a move that will boost both countries’ fight against illegal fuel laundering. According to figures, the use of illicit diesel is estimated to be 12% of the market share in Northern Ireland and about 2% in the rest of the UK.
Whilst welcoming the introduction of the marker, FTA also went on to voice a word of caution in the use of the initiative, stating that ‘any chemical solutions to fuel laundering are ultimately prone to chemical counter-measures by fuel launders'.
The FTA added that it has long campaigned against fuel laundering, outlining the enormous financial loss to HMRC and the Irish Revenue through the use of illicit and washed diesel, saying that as a result the issue is causing huge damage to compliant operators.
Seamus Leheny, policy & membership relations manager – Northern Ireland, said: ‘FTA welcomes any effort that can help reduce or eliminate fuel laundering, and the announcement of this marker we are sure will go a long way to help.
‘Fuel represents approximately 40% of operating costs for transport operators hence legitimate operators in Northern Ireland are at a distinct disadvantage when competing against those that illegally use laundered diesel.’
The association outlined suggested accompanying measures that it considers are also required:
- Removal of haulage/passenger licences from operators found using laundered fuel
- Confiscation and sale of any vehicles found using laundered fuel, even where it is a first-time offence
- Confiscation and sale of land/premises where fuel laundering is taking place, even where it is a first-time offence
- Minimum prison sentencing for those involved in fuel laundering.