Hong Kong today reinforced its crackdown on fuel smuggling in vehicles arriving from mainland China, driven by the rising cost of oil caused by the Middle East war.
In recent weeks, more cross-border trucks suspected of bringing illegal petrol into the city have been intercepted, many fitted with enlarged tanks or modifications to carry greater volumes destined for illegal petrol stations, said Hong Kong’s Commissioner of Customs and Excise Chan Tsz-tat.
Authorities have ordered the seizure of all vehicles involved and intend to request their permanent confiscation by the courts under existing import, export and excise legislation.
Chan stressed that the price differential between mainland China and the financial hub, combined with the escalating international cost of crude oil, has created a “strong economic incentive” for smugglers to take additional risks. He assured, however, that the department has a robust intelligence system and is conducting targeted inspections that have detected numerous cases at border crossings.
The commissioner also warned that purchasing untaxed petrol constitutes a crime involving both tax evasion and significant safety risks.
“Alterations to tank structures, hidden loading points and storage under unregulated conditions increase the risk of leaks, fires and explosions, particularly in densely populated areas or in car parks and industrial warehouses where clandestine stations operate,” Chan said.
Drivers responsible for these operations face prison sentences and fines under the Import and Export Ordinance and the Dutiable Commodities Ordinance.
The rise in cases comes against a backdrop of surging fuel prices driven by the conflict in Iran and tensions in the Strait of Hormuz, which have raised shipping and insurance costs and pushed up benchmark prices for Brent crude and distillates such as diesel.
Read more: Iran War: barrel of oil surpasses $90, highest since April 2024
Hong Kong transport sector representatives have warned that temporary fuel surcharges for deliveries and logistics services are being studied, as operators face long-term contracts that limit their ability to immediately pass rising costs on to tariffs.
Meanwhile, China on Tuesday raised retail petrol and diesel prices following the increase in oil prices on international markets — the largest rise in nearly four years.
