Diesel alert in Ireland
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by David Craik III Northern Irish hauliers are costing the Exchequer a fortune in lost revenue through their
widespread use of red diesel and the amount of fuel they buy in the Republic of Ireland.
Patrick Pedlow, Northern Ireland area manager for the Road Haulage Association, says red diesel is currently a serious problem for the industry in the Province. "It is widespread here," he says. "Red diesel is 13p a litre. The duty alone in Northern Ireland on a litre of diesel is 36.8p."
Pedlow says hauliers have complained to him that they are being undercut. When they look at their costings, they are finding it impossible to run legally without using red diesel.
He has also received invoices from hauliers who are legitimately spending up to £100,000 a year on buying fuel from the Republic rather than in Northern Ireland.
"Diesel in Southern Ireland is about 13p a litre cheaper than in Northern Ireland," says Pedlow. "Between these two practices, the loss of revenue to the Exchequer could be approaching hundreds of millions of pounds."
The RHA is compiling a dossier on the illegal use of red diesel. It intends to present this information to the Government, along with suggestions as to what might be done to alleviate the problem.