Buyers of illicit fuel in Hong Kong could face a maximum penalty of HK$1 million (US$127,687) and one year in prison under proposed legal amendments aimed at curbing illegal refuelling amid surging global oil prices, the South China Morning Post has learned.

According to a government source, the Security Bureau has also proposed tougher penalties for sellers, increasing the maximum fine for a first conviction from HK$100,000 to HK$3 million and raising the maximum jail term from six months to three years.

The source added that the proposed changes to the Fire Services (Fire Hazard Abatement) Regulation are set to be discussed at the Legislative Council’s security panel meeting on May 5.

Under the Dutiable Commodities Ordinance, the sale or purchase of untaxed petrol is punishable by a HK$1 million fine and up to two years in prison, with enforcement handled by customs authorities.

However, the illegal purchase of diesel – which is not taxed in the city – or duty-paid petrol from such stations is not currently a criminal offence.

Christine Fong Kwok-shan, a lawmaker and member of the security panel, told the SCMP she “fully supports” a crackdown on illegal fuel transfer activities.

“The penalty must be more substantial as the previous amount was too small, and the deterrent effect far too low,” she said.

In addition to extending criminal liability to both buyers and sellers, Fong said she had been informed that the proposal would grant the Fire Services Department targeted powers to arrest or intercept suspects at illegal refuelling stations and to remove or detain vehicles or fuel-supplying equipment involved.

At present, fire services officers can only stop, board and search vehicles during illicit fuel raids but do not have the authority to seize them.

Fong said regulating illegal fuel stations and mobile refuelling points converted from vehicles was important for public safety.

“When refueling [at these points], any spark could potentially cause an explosion,” she said. “Using such crude refuelling arrangements without any fire safety facilities puts your own life at risk and can affect nearby residential areas and schools.”

Law enforcement agencies have stepped up raids on illegal diesel and petrol stations in recent months.

The SCMP has contacted the Security Bureau for comment.