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 said the proposed changes to the Fire Services (Fire Hazard Abatement) Regulation were set to be discussed at a Legislative Council 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.

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