Hong Kong Customs Launch 18 Operations Against Illicit Refuelling Stations Amid Regional Price Surge
Commissioner says illegal fuel trade increasing in urban areas but not widespread, citing high vehicle ownership costs
Quick Look
- Hong Kong authorities conducted 18 joint operations against illicit refuelling stations this year as the practice grows in urban areas.
- Customs chief Commissioner Chan Tsz-tat said while the trend is upward, illegal refuelling is not widespread due to high vehicle ownership costs and already expensive petrol prices in Hong Kong.
- The operations come amid global energy price surges following disruptions in the Strait of Hormuz after conflicts broke out in late February, with Brent crude rising from around US$70 to US$105 per barrel.
AI-generated summary
Why It Matters
Hong Kong has some of the highest petrol prices in the region due to high vehicle ownership costs and taxes. The global energy price surge following Middle East tensions has created conditions for increased illicit fuel activity in urban areas.
Hong Kong authorities launched 18 joint operations against illicit refuelling stations this year amid a global energy price surge, with the customs chief noting the practice has become increasingly common in urban areas. But Commissioner for Customs and Excise Chan Tsz-tat said on Saturday that despite the upwards trend, illegal refuelling was not widespread locally. "The cost of owning a private vehicle in Hong Kong is very high, and petrol prices here are undoubtedly among the highest in the region," he said. "For many drivers, the savings from using illicit fuel may not make up a significant portion of their overall expenses." Since conflicts triggered by a US-Israel attack on Iran broke out in late February, crude oil supply chains have been disrupted as Tehran and Washington took turns blocking the Strait of Hormuz, a strategic waterway leading to the oil-rich Persian Gulf. Global energy prices have since skyrocketed, with the Brent crude benchmark rising to US$105 per barrel on Saturday, compared with around US$70 in February.
Open Questions
- How many illicit refuelling stations have been shut down this year?
- What is the estimated value of illicit fuel seized?
- Are there any safety incidents related to illicit refuelling?
