AROUND 2,800 litres of contaminated fuel, red diesel and kerosene was seized from a filling station in Caerphilly county.

Road fuel testing officers from Her Majesty’s Revenue and Customs arrived at the site last Wednesday and found two large fuel tanks containing what purported to be duty-paid white diesel selling at £1.25 a litre.

Checks showed the fuel contained large quantities of kerosene, which attracts a lower rate of duty. The kerosene had been added to white diesel in a process known as ‘stretching’.

HMRC seized and removed 990 litres of the contaminated fuel, 990 litres of red diesel and 820 litres of kerosene.

As enquiries continued, a number of individuals arrived at the filling station to buy diesel. Officers seized ten commercial and private vehicles which tested positive for red diesel or contaminated fuel.

These were given back after a penalty was paid, while penalties will also be issued to owners of the filling station for failing to register as a dealer in controlled oils.

Stuart Fenton from HMRC’s South West and Wales road fuel testing unit said: "White diesel selling at 15p less than the normal price might seem like a fantastic deal, but in this case it was no bargain. Kerosene makes white diesel more combustible, and prolonged use would undoubtedly damage the engine of any vehicle.

"Legitimate businesses are already facing difficult times, and it is wrong that they should be undercut by those involved in this type of activity."

Anyone with information about fuel fraud can call 0800 59 5000.

A spokeswoman for HMRC said the filling station cannot be named at this stage until investigations are completed and its is decided whether a criminal prosecution will be pursued.