Fuel Tax Evasion

About Fuel Tax Evasion

Fuel tax evasion costs governments billions annually. Common methods include using untaxed agricultural diesel or heating oil in vehicles, laundering markers from rebated fuel, and smuggling fuel across borders. In the UK, fuel laundering involves removing chemical markers from agricultural diesel using acid, creating toxic waste. Illegal fuel laundering plants are found regularly in Northern Ireland and the Republic of Ireland. The EU requires member states to mark rebated fuel with chemical markers to prevent misuse. In some countries, fuel smugglers mix cheap fuel with legitimate fuel to stretch supplies. The margins on fuel tax evasion are enormous, making it attractive to organized crime. Tax authorities use sophisticated methods to detect fuel fraud, including fuel testing at checkpoints and supply chain monitoring.