The Freight Transport Association (FTA) has welcomed the government's new initiative for targeting fuel fraud.

A new marker system is being introduced by HM Revenue and Customs (HMRC) and the Irish Revenue Commissioners to help combat the criminal market in off-road diesel. Currently, fraudsters are able to remove the identification colouring by filtering the fuel through a combination of acid and chemicals. 

This process is known as laundering and takes advantage of the government's policy of offering rebated diesel and kerosene for the agriculture and construction sectors. Once the existing markers (coloured red in the UK and green in Ireland) are removed, the fuel is then sold at a profit.

Seamus Leheny, policy and membership relations manager for the FTA in Ireland, commented: "Fuel represents approximately 40 per cent of operating costs for transport operators hence legitimate operators in Northern Ireland are at a distinct disadvantage when competing against those that illegally use laundered diesel."

The association has also suggested HMRC introduces further measures to help combat fraud. These include removing the licences of operators that use illegal fuel and the introduction of a minimum prison sentence.