The proposal, which was accepted by a large majority, also calls on the Irish and British Governments to introduce a simple non-bureaucratic registration and rebate scheme for users of marked diesel.
Cllr Geraldine Donnelly, who highlighted the damage being caused to the environment and the potential catastrophic dangers to wildlife and humans alike, said: "We thank council for its support. The motion gained the support of a wide majority.
"The dumping of this illegal laundered fuel is costing taxpayers hundreds of thousands of pounds every year in removing the waste and millions more to police and investigate. Yet to date, only four have been given a custodial sentence for the crime.
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"The dangers to our environment could be catastrophic with the toxic remains on occasions having been dumped on wasteland filtering into the watercourse and endangering the lives of animals and people alike.
"This is a wise, cost-effective solution which could be quickly implemented."
Cllr Michael Carr added: "Dundalk Town Council have already unanimously adopted a similar motion and if accepted here tonight it will begin the impetus for a full cross border demand on both the Irish and British governments to finally solve this problem. Launderers will not be removing the dye, and there will be no sludge and damage to our environment, if there is no profit for their efforts.
"Fuel fraud is not a victimless crime. We are the victims, our hospitals and schools are victims and those on welfare are victims. Almost a billion pounds, £917m to be exact, was added last year to funding for enforcement and anti-avoidance work across the UK and Northern Ireland. Add that to the cost of cleanup and loss to the exchequer over a few years and we begin to talk about billions rather than millions."
(CD)
