Asia/Pacific News
Arrests Made as China Cracks Down on Bunker Smugglers
Chinese authorities have arrested two gangs who are suspected of smuggling an estimated 440,000 tonnes of refined oil worth 2.2 billion yuan ($355 million), the Chinese Customs Administration has announced.
Law enforcement reportedly detained more than 250 suspects earlier this month who were thought to have been organizing smuggling operations through seven coastal provinces and major ports such as Ningbo, Tianjin, and Shanghai.
At the time, 2,300 tonnes of fuel were reportedly seized, along with 22 vessels, books, and other material evidence.
The two gangs reportedly carried out their deals in two different ways, with one using fishing boats and the other using ships pretending to clean oily waste from oil tankers.
According to reports, fuel smuggling is on the rise in China as smugglers have been capitalizing on low crude oil prices and the rise in consumption taxes on fuel in the country.
China hiked its consumption tax on fuel three times between November 2014 and January 2015, with the tax increases creating a wide gap between spot market and domestic prices.
The Chinese Customs Administration added that it has jointly deployed a force with the China Sea police to further crack down on smuggling in key coastal areas, with the patrols to run from March to December 2015.
Last week, it was reported that China and Singapore have both grown to become two of the world's largest bunker markets.
