Two men from Coalisland have been arrested and 1,000 litres of suspected laundered diesel seized by HM Revenue and Customs (HMRC) on Thursday afternoon.
HMRC and Police Service of Northern Ireland officers searched three commercial premises in the Dungannon area, where they seized fuel along with a van and a tank.
John Whiting, HMRC Assistant Director for Criminal Investigation, said: “The production of illicit fuels is organised fraud, robbing taxpayers of millions each year in unpaid duty and VAT, as well as the waste by-product damaging the environment.
“Anyone with information about the production, storage or sale of illicit fuel in their area should contact the Customs’ hotline on 0800 59 5000.”
The men, aged 40 and 48, were interviewed by HMRC and have been released on bail.
Investigations are ongoing.