Hong Kong customs seizes more fuel-smuggling vehicles as Iran war lifts prices

Hong Kong customs officers have intercepted more cross-border vehicles suspected of smuggling petrol into the city as fuel prices surge amid the war in the Middle East. Commissioner of Customs and Excise Chan Tsz-tat said some vehicles had even increased the capacity of their fuel tanks to carry more petrol for supplying illegal filling stations. “In the past few weeks, we have uncovered many such cases including private cars that had enlarged their fuel tank capacity and made other modifications,” he said on Wednesday at the Regional Conference on Smart Customs. “These vehicles have been seized by customs, and we will apply to the court for their confiscation as well.” Chan’s department said it had stepped up its crackdown on illegal fuel activities, detecting 18 cases as of February, and seizing 19,974 litres of illicit fuel. A spokesman noted authorities detected 56 illegal fuel cases in 2025, seizing 118,987 litres. The number of cases rose by 30 per cent from 2024, while the amount of fuel seized more than tripled. Oil markets have been volatile since the United States and Israel jointly launched an attack on Iran on February 28, forcing Gulf producers to cut output and effectively closing the strategic Strait of Hormuz, where 20 per cent of the world’s supply passes. Brent crude, the global oil benchmark, rose to as high as US$119 a barrel at one point and prices are currently 50 per cent higher than they were before the start of the war. Ringo Lee Yiu-pui, governor and honorary life president of the Hong Kong, China Automobile Association, said retail prices of petrol and diesel had risen by about HK$1 a litre following the start of the war. “The oil depots in Tsing Yi usually have three weeks of storage and must clear existing stock before purchasing new supplies,” he said. “The current increase already reflects a trend that fuel prices will continue to rise further.” Lee noted that private car owners in Hong Kong had no choice but to use the most expensive fuel available – 98-octane unleaded petrol, which carries a tax of HK$6.06 per litre. The cost of this fuel, he said, was staggering compared with neighbouring regions as it was four times more expensive than in Taiwan and over three times the price in mainland China. “An extra HK$1 for a vehicle with a 1,000-litre tank means an additional cost of HK$1,000,” Lee said. “The price hike might drive motorists to seek illegal options.” Chan said the price difference between the mainland and Hong Kong, combined with rising fuel costs, had created an economic incentive for criminals to take the risk. He warned that buying untaxed petrol was a criminal offence, noting it involved not only tax evasion but also safety hazards if fuel was not filled at licensed and equipped stations. “When this untaxed petrol is being filled into vehicles, there is an extremely high risk of fire,” he said. “This not only creates a very dangerous situation for the vehicle involved but also for the surrounding neighbourhood.” A truck driver and an industry representative told the South China Morning Post that rising diesel prices were eating into their livelihoods and would force them to pass the extra costs on to customers. A crane-truck owner-operator surnamed Ho said about 10 per cent of his monthly income had been wiped out after he had to pay several thousand Hong Kong dollars more for fuel. “I have had to dip into my savings to cover these losses and monthly expenses,” he said. But he dared not pass the extra costs on to customers. “The future is uncertain for now … If you raise your prices but your competitors do not, you risk losing your edge,” Ho said. “In the short term, we have no choice but to absorb the costs for now.” Leung Kun-kuen, chairman of the Kowloon Truck Merchants Association, noted that more than 68 per cent of Hong Kong’s truck drivers rent vehicles. Of those, more than 60 per cent were small businesses or self-employed operators, he said. He said it was inevitable that some of the additional fuel costs would eventually be passed on to clients. “With the sudden spike in fuel prices this time, everyone has to charge extra; it’s unavoidable,” Leung said. “All Hong Kong residents have to suffer this time.” The US Energy Information Administration said on Tuesday that it expected Brent crude prices to stay above US$95 per barrel over the next two months before falling to about US$70 by the end of the year. Brent oil fell to US$87.32 per barrel on Wednesday morning, down from the same time last year despite a 29.32 per cent rise year on year. Hong Kong, which relies entirely on imported fuels, has seen inflated pump prices even after walk-in discounts and excluding duty. For example, Caltex Hong Kong, one of the city’s five petrol station operators, charged motorists 56 per cent more for standard petrol between February 28 and March 10, at HK$24.13 per litre, according to the Consumer Council’s fuel tracker index. Caltex recorded the steepest increase during the period, followed by Shell, which rose by 8.4 per cent to HK$18.03 per litre. Sinopec Hong Kong’s price increased by 8.2 per cent to HK$18.53, while PetroChina’s rose by 5.4 per cent to HK$17.53. Esso Hong Kong was the only operator to end the period lower than it started, falling by nearly 25 per cent to HK$16.53 per litre after walk-in discounts and excluding duty, despite several sharp upwards fluctuations during the period. Meanwhile, the inaugural Regional Conference on Smart Customs brought together more than 200 representatives from the World Customs Organization, global customs administrations and the technology sector. Speaking at the opening ceremony, Secretary for Security Chris Tang Ping-keung said there were still some challenges facing the development of smart customs, including fragmented standards, the need for deeper private-sector engagement, and the further strengthening of cybersecurity and data governance. He said possible solutions included harmonising digital standards, narrowing the digital divide between regions and strengthening public-private partnerships.

Hong Kong customs seizes more fuel-smuggling vehicles as Iran war lifts prices

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}Price gap between mainland China and Hong Kong, combined with rising fuel costs, creates economic incentive for criminals to take risk, customs says

Price gap between mainland China and Hong Kong, combined with rising fuel costs, creates economic incentive for criminals to take risk, customs says