Old enemies smuggle fuel together

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Fuel smuggling and diesel laundering is proving so lucrative in Northern Ireland that traditional enemies are working together to make money.

Loyalists and republicans are setting aside their political differences for a common aim - financial profit.

To those involved, pounds are more important than politics.

In the latest raid by customs officials, illegal fuel was seized in a loyalist area, which had been supplied by a gang from a republican area.

The scam broke a range of political boundaries.

The diesel came originally from the Irish Republic, was smuggled across the border into Northern Ireland, to the republican south Armagh area. It was then driven north to Belfast, into the loyalist Shankill Road district.

As one insider put it: "There's no religion on a £10 note."

By by-passing fuel duty, there is money to be made by the criminals - and revenue to be lost by the Treasury.

It is estimated that more than £100m is lost every year in Northern Ireland. On top of that are the losses to legitimate petrol and diesel retailers who cannot compete with the cheap fuel scam.

The fuel was transported in lorries and vans

So how does it work? The gangs bulk-buy thousands of low-duty agricultural diesel in the Republic. This is so-called green diesel which is sold cheaply - and dyed green - and is supposed to be used off-road, mainly in the agricultural industry.

Then comes the science bit. In secret sheds, the dye is removed from the fuel, using a number of chemicals, to make the diesel appear legitimate.

Once it is treated, it is then put into large containers which are loaded onto lorries or vans and then distributed to illicit pumps across Northern Ireland.

This is not just illegal, it is also highly dangerous as thousands of litres of fuel are spread around the country, hidden on the back of lorries, totally unsuitable for such a lethal cargo.

These makeshift fuel tankers are effectively ticking time-bombs.

A spokesman for Her Majesty's Revenue and Customs said: "Illegal fuel steals cash meant for hospitals and schools. It undermines honest filling stations and damages car engines, causing expensive problems for drivers.

"It is not a bargain - it is a determined attempt to defraud the Exchequer and the public."

Secret pump

This duty-free fuel is a gold mine for those involved. They can make up to 30p a litre in profit.

Drivers buying it at a secret pump can save at least 15p a litre on normal garage prices.

What they often do not realise is that the treated fuel could ultimately damage their engines.

Treating the low-duty green diesel is a messy process, and it is not just engines which can be damaged, but the environment. During the processing of the fuel, a toxic by-product is created, which is usually dumped into rivers.

Those involved care about only one thing - money.

The authorities are trying to track them down. In spite of some success, there is a long way to go.

Smuggling in Ireland is as old as the border itself. The fuel scams will not disappear overnight.

The money made by the criminals is lost by the Treasury