Hong Kong arrests 9 over fuel smuggling as oil prices surge

Hong Kong arrested nine people in a city-wide operation targeting illicit fuel activities, authorities said on Wednesday, as surging global oil prices continue to put pressure on the import-dependent financial hub.

The city lacks its own refineries and imports its entire supply of automotive fuel, with much of it coming from neighbouring mainland China.

High fuel prices drive illegal trade

Prices at Hong Kong’s filling stations are among the world’s most expensive, creating a growing incentive for smugglers to transport cheaper fuel illegally across the border into the city.

Authorities said they seized more than 30 000 litres of smuggled fuel worth more than HK$1 million (US$127 000) in September, arresting eight men and one woman.

Criminals are using modified cross-boundary trucks or private cars with enlarged fuel tanks to smuggle fuel through control points, Chong Sin-han, a senior investigator at the customs department, told reporters on Wednesday.

“Fuel prices remain persistently high, tempting illegal traders to sell more untaxed gasoline for profit and tempting citizens to take risks by purchasing it,” said Chong.

Authorities seized vehicles that “were unventilated, increasing the risk of fire or explosion”, said Leung Nam-cheuk, a fire officer at the anti-illicit fuelling activities task force.

The retail price of standard petrol reached about HK$34.60 per litre in Hong Kong this week, which saw a jump of 16.6 percent since late February as the Middle East conflict disrupts global shipping and strains energy supplies.

Middle East conflict adds to fuel pressures

Hong Kong also saw rises in freight and insurance costs, which pushed diesel prices to record highs, authorities told lawmakers on Wednesday, noting the Strait of Hormuz shipping routes faced significant disruptions and that Saudi Arabia’s oil infrastructure came under renewed attacks.

As of September, Hong Kong customs officials had arrested at least 84 people suspected of engaging in illegal fuel dealings this year and seized 95 000 litres of fuel.