The illegal fuel import scam cost the Portuguese State €66 million between 2013 and 2017, during which period the cheapo filling station chains increased their market share by 2.7%.
The companies bought diesel in Spain, paying lower biofuel tax rates than those applied in Portugal, as if the consignments were to be sold into the Spanish market.
In fact, the fuel was transported by land to Portugal and sold to consumers, thus avoiding the collection of contributions to the Environmental Energy Efficiency Fund.
An analysis was commissioned by the Secretaries of State for Energy and Tax Affairs with the National Entity for the Fuel Market and the Tax and Customs Authority carrying out the work.
"Without prejudice to other factors ... the non-compliance with the incorporation and sustainability regime of biofuels allowed non-compliant operators to lower their prices and distort competition in the market," the resulting report stated.
For this reason, "these operators have significantly increased their volume market share between 2012 and 2017 and sold 127,000 tonnes of diesel and 31,000 tonnes of gasoline," continued the report.
These companies caused a "loss of revenue for the State, promoted unfair competition in the market” and also failed to allow the State to incorporate these biofuel sales in the national renewables target."
The working group points out "a lack of control over operations and quantities," as Portugal’s eagle-eyed tax department allowed the situation to continue for years despite competitors’ complaints that imports were undercutting domestic resellers.
Only in January 2018 did the government take five companies to court for importing undeclared diesel from Spain, claiming €48 million in compensation for the "repeated failure to pay" the biofuel supplement since 2015.
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