Recession and price rises have led to resurgence in illicit trade

ANALYSIS : Five major fuel laundering plants have been found in the Republic so far this year

ANALYSIS: Five major fuel laundering plants have been found in the Republic so far this year

CRIMINALS SUCH as those behind the massive fuel laundering plant discovered in Co Monaghan yesterday run lucrative illegal businesses by simply washing the dye from agricultural diesel before selling it on at a much higher price as regular motor fuel.

Diesel intended for use in the agricultural sector is marked with a green dye. Once dyed, or marked, it is subject to lower taxes than those applied to regular fuel. This move is designed as a fuel subsidy for farmers and other owners of heavy commercial vehicles eligible to use the green fuel.

Those operating the laundering plants source agricultural diesel, usually by the tanker-load.

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They then run the load through a laundering system, removing the green dye. This enables them to sell the fuel as regular motor fuel in some cases to unsuspecting garage owners, who resell it to motorists on garage forecourts.

In other cases, garages are run by criminal elements who are aware the fuel is laundered.

The dyed fuel – which is green in the Republic and red in the North – costs about 70c per litre. When the dye is removed, the diesel sells for about €1.40 per litre.

The process of laundering, or washing, green or red diesel is achieved by pumping it through bleaching chemicals or more solid substances such as cat litter.

The process leaves behind a toxic sludge, which is often dumped illegally, leaving local authorities to dispose of it. At the plant found yesterday in Monaghan, three skips filled with sludge were found.

The cleaning process is also believed to remove chemicals with lubricant properties from diesel, making laundered fuel damaging to a vehicle’s engine.

The Provisional IRA effectively ran the illegal laundering black market for decades, mainly in the Border area.

The revenues they raised were used to fund the organisation’s terror campaign, including the sourcing of weapons and running of terror cells both in Ireland and abroad.

While many of the plants continued to operate for private gain after the IRA disbanded, there was a lull in such activity for a number of years.

However, the impact of the recession and the spike in fuel prices have meant economic conditions are now perfect for a resurgence in the illicit trade in the Republic, which is now in evidence.

There have been five major laundering plants found in the Republic so far this year. This compares with no such finds in the same period last year –and no laundering plant finds in all of 2009.

The plant raided yesterday was one of the largest ever found here, with some sources saying they believe it is the largest found to date.

The seriousness with which Revenue and the Garda approached yesterday’s major criminal raid was underlined by the fact the armed regional support unit was unusually drafted in as back-up.

Conor Lally

Conor Lally

Conor Lally is Security and Crime Editor of The Irish Times