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Seanad
‹ Order of Business

Petrol stretching damage

Summary

Senator Ray Butler reports a renewed epidemic of diesel laundering and petrol stretching, which is destroying vehicles, and seeks clearer responsibility among retailers and insurers.

We had a meeting with Customs officers recently. The incidence of petrol stretching has increased again. This is because a new dye has been put in diesel and the diesel launderers are finding it very hard to get it out of it. In counties Meath and Mayo there has been an epidemic of petrol stretching, resulting in cars being absolutely destroyed. In certain cases, the retailer sorted out some of those affected. In other areas, the insurance company did so. With the retailer, one had to have a track record, including receipts. With the insurance company, it was a question of one's policy. What is happening now, however, is that insurance companies are including clauses stating they will not cover the policyholder if an engine is damaged by petrol stretching. What I am saying to the public today is that if the price is too cheap, there is something wrong. If a petrol station has no brand or does not have a sign up with the retailer excellence code, one should keep going. In the long run, one will pay, and pay dearly. Customs officials have said this is a very serious problem and that the launderers are going to extremes to water down the petrol. In certain cases, they get away with it, with a 5% kerosene mix, but they are now increasing the proportion of kerosene 15% or 20%.

Another practice the criminals have resorted to is the selling of non-winner scratch cards. They are mixing non-winner scratch cards with legitimate scratch cards, resulting in a profit of 300% for the retailer. When one system of making money illicitly falls through, the criminals move on to some other game. Petrol laundering is a serious issue.

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