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Containers of sludge at a fuel laundering plant. File photo. Niall Carson/PA Wire/Press Association Images

Oil laundering plant discovered in Monaghan

Customs officers uncovered a sophisticated oil laundering plant in Glaslough, seizing about 40,000 litres of product last night.

TWO MEN HAVE been arrested following a raid on an oil laundering plant in Monaghan last night.

Customs officers seized about 40,000 litres of product at the site in Glaslough. However, they said there was capacity to launder about 8 million litres of fuel per year with a potential loss to the Exchequer of €4 million.

A 40-foot tanker and lorry, van, forklift and a compressor were also seized during the raid.

At such plants, agricultural diesel is stripped of its dye and certain chemicals and sold on as road diesel – which is much more expensive. Agricultural diesel is subject to a special lower rate of tax, allowing the scammers to profit from the difference.

The two men in their thirties are from Northern Ireland and are currently being questioned at Monaghan Garda Station.

Revenue said the operation is part of its ongoing activities to tackle fuel fraud. Officials reminded motorists and the public that they should be aware of the risks posed to their vehicles by using laundered fuel.

The AA recently estimated that up to ten per cent of the total diesel market in Ireland could be laundered, saying the cost to the State coffers might be up to €200 million annually, while Fine Gael TD Ray Butler said the cost could be closer to €300 million.

Read: Laundered diesel fuel costing  State ‘up to €300million a year’>

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11 Comments
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    Mute Keith Colton
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    Oct 4th 2011, 9:43 AM

    When they say risks they never actually make it known what they are. Fuel launderers use acid to strip the dye out, this fuel is corrosive and can destroy fuel pumps and injectors, among the most expensive components of a diesel engine.

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    Mute Brian Doherty
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    Oct 4th 2011, 10:15 AM

    Thanks keith, I often wondered exactly what the prob with this diesel was

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    Mute Eric Davies
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    Oct 4th 2011, 10:56 AM

    so the exchequre would have lost ‘about 4 million’ in revenue on the 8 million litres of fuel, thats equal to 1 euro for every 2 ltrs of fuel , no bloody wonder the regulaters never stop oil company’s from putting up prices, the real theives here are the govt for taking so much in tax and artifically inflating the price of fuel, people will go without heating this winter and ‘fuel poverty’ is rising, maybe if fuel was’nt so expensive or more was invested into alternative fuels that are cheaper and less damaging to the atmosphere, these criminals wouldnt be as tempted to launder fuel?

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    Mute John Murphy
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    Oct 4th 2011, 11:07 AM

    Perhaps the government should have a look at why only farmers are benefiting from this reduced tax. Giving the difficulties experienced by small and medium business in the country a fairer spread of the tax reduction would help reduce the amount of employers going to the wall and ensure less of a demand for this dodgy fuel throughout the market.
    Farmers a doing quiet well at the moment I understand.

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    Mute Paul Curley
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    Oct 4th 2011, 12:00 PM

    Of course John you have proof of this

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    Mute John Murphy
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    Oct 4th 2011, 12:41 PM

    i’m not a Judge of the law courts Paul. I just read the papers and follow the news like most people

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    Mute Paul Curley
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    Oct 4th 2011, 11:04 AM

    What are trying to say John? Spit it out. There is no need to be afraid

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    Mute John Murphy
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    Oct 4th 2011, 11:16 AM

    We all know that the majority of fuel laundering and smuggling is being carried out by paramilitary organizations or ‘ex’ paramilitary organizations! That clear enough Paul.

    And yes there is need to be afraid. By the Way!

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    Mute Paul Curley
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    Oct 4th 2011, 3:00 PM

    How silly of me to forget the Irish press are always right. Sorry

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    Mute Michael Campbell
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    Oct 4th 2011, 9:46 AM

    That’s racist 2 men are from N Ireland or so some people would say ha aa

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    Mute John Murphy
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    Oct 4th 2011, 10:57 AM

    Racist? No. But it suggests something else. I wonder what?

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