First illegal fuel laundering plant found in Republic for almost three years

An illegal fuel laundering facility has been discovered in the Republic for the first time in almost three years as the spike in fuel costs due to the Russian invasion of Ukraine has made the illicit fuel trade much more lucrative.

Garda sources said it was too early to say if the increased cost of fuel at garage forecourts would lead to a spike in illicit fuel laundering. However, they believe some criminals will be quick to exploit the opportunity if fuel prices remain high.

In an intelligence-led operation, Revenue's officers backed by the Garda's Armed Support Unit found 14,000 litres of marked mineral oil, or green diesel, at commercial premises in Kilkerly, Dundalk, Co Louth. The search operation, carried out on Monday, also uncovered evidence that the marker was being laundered out of the fuel at the premises.

The Revenue-Garda team also discovered two oil tankers involved in the fuel laundering process, one containing 8,000 litres of laundered fuel, as well as a van which acted as a mobile oil laundry and contained oil laundering apparatus. Some 400 kilos of bleaching earth, a product used in the laundering of prescribed markers from rebated mineral oil, was also found.

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When vehicles at the site were tested, laundered fuel was found in one car, which resulted in its seizure. Two men, in their 50s and 60s, who were on the premises when the raid began were interviewed by Revenue’s officers.

The find in Co Louth was the first time since May 2019 that a commercial scale fuel laundering operation was discovered in the Republic. The illicit operation uncovered on that occasion was also located in Co Louth.

In 2015, amid an epidemic in fuel laundering run mainly by elements in the Republican movement, Revenue decided Accutrace would be introduce as a new colourless marker. It is much harder to wash out of green diesel than the markers previously used and resulted in a decrease in fuel laundering.

Under the law in the Republic and UK, Accutrace must be added to any rebated fuel being sold for use in the industrial, commercial, agricultural and construction sectors. As green diesel sold to those sectors is about 40 per cent cheaper than road diesel, it is not permitted in motor vehicles. However, some criminal gangs source green diesel and wash the marker out so it can be sold as road diesel, delivering a very significant profit for the gangs involved.

Laundered fuel is said to cause significant damage to car engines if used over time. The laundering process leaves behind a toxic sludge, which the gangs usually dump by the roadside, forcing local authorities into an expensive clean-up process.