Revenue have uncovered a diesel laundering plant in Co Monaghan this week.
Customs officers and armed gardaí closed down the operation near Castleblayney on Thursday morning and seized two tankers, 20,000 litres of laundered fuel and 140 bags of material used to bleach the diesel.
Ancillary equipment associated with diesel laundering plus cash, bank drafts and cheques in excess of €60,000 were also seized.
A revenue source said the laundered fuel came from Northern Ireland as it was marked with red rather than green dye, the latter colour being the one used in the Republic.
Exchequer loss
Follow-up raids in Cavan and Monaghan recovered 14,000 litres of laundered diesel from a filling station with the fuel also being used by two haulage firms.
The illegal activities represent a potential loss to the exchequer of €1.2 million a year, assuming the product would have displaced legitimate diesel sales in the marketplace.
Investigations are ongoing with a view to prosecution.
Red diesel attracts a significantly lower rate of excise duty and VAT but its use in ordinary road vehicles is illegal. Fraudsters attempt to remove the fuel marker and sell it at a higher price, as ordinary road diesel.
If businesses or members of the public have any information regarding the smuggling or sale of illicit fuel, they have been asked to contact Revenue in confidence on free phone number 1800-295295.