Lord Berkeleyasked Her Majesty's Government:
Following the statement by the Chancellor of the Exchequer that he proposed to increase the rate of duty on -red diesel" by one pence a litre because of the prevalence of fraud amongst its users, what evidence they have of diesel fuel-related fraud among rail freight operators. [HL334]
§ The Parliamentary Under-Secretary of State, Department for Culture, Media and Sport (Lord McIntosh of Haringey)The UK oils strategy was launched in September 2002 to address the misuse of duty-privileged fuels such as red diesel and kerosene in the road fuel sector. Narrowing the differential between the duty rate for road fuel and that for red diesel reduces the incentive for misuse and eats into the profits that can be made by the organised criminal gangs behind the large-scale supply of the illicit market.
Of more concern is the security of rebated fuel storage at these operators' sites. With red diesel and kerosene now being harder for fraudsters to source, due to the Registered Dealers in Controlled Oils (RDCO) scheme, they are increasingly turning to theft of product. Through discussions with traders we are trying to increase their awareness of this risk.