KLN Logistics has told HKFP that a vehicle bearing the firm’s logo, which was spotted filling up at an alleged illegal fuelling site in Kwai Chung last week, was operated by a subcontractor. An alleged illegal refuelling site in Kwai Chung on May 7, 2026. Photo: Supplied. An HKFP reader spotted the driver of the truck refuelling on Kwai Wo Street at around 10.30am on Thursday and shared photos of the incident.
In response to HKFP’s enquiry, a spokesperson for KLN Logistics – previously known as Kerry Logistics – said on Friday that “it was confirmed upon our investigation that the truck shown in the photo was operated by a subcontractor.”
The spokesperson added, “As we understand, the concerned subcontractor has already filed reports with relevant law enforcement authorities about the incident. If required, KLN will fully cooperate with the authorities’ investigation but in the meantime, we are not in a position to disclose any further details.”
The incident in Kwai Chung occurred weeks after authorities launched a crackdown on illicit fuel amid soaring petrol prices due to the war in the Middle East. The Customs and Excise Department, the Fire Services Department and the Hong Kong Police Force mounted a territory-wide joint operation targeting illicit fuel activities from April 13 to 20, 2026. Photo: GovHK. According to a Customs and Excise Department press release on Wednesday, law enforcement mounted a territory-wide joint operation codenamed “Knockout” targeting illicit fuel activities from April 13 to 30.
“Officers of Customs, the FSD [Fire Services Department] and the Police detected 19 related cases, and seized more than 21,000 litres of illicit fuel, 15 vehicles and one speedboat with an estimated market value of about $3.3 million. A total of 27 persons were arrested,” it said.
The operation shut down “five illicit mobile motor spirit fuelling stations in Lok Fu, Kowloon Bay, Wong Tai Sin, Kai Tak and Tsing Yi,” it added. An alleged illegal refuelling site in Kwai Chung on May 7, 2026. Photo: Supplied. On Thursday, HK01 reported on several illegal refuelling sites in Kwai Chung, with a number of prosecutions taking place.
HKFP has reached out to customs and police for comment.
Soaring fuel costs
The standard price of unleaded petrol as of Monday is HK$32.54 per litre, according to the Consumer Council. See also: Hong Kong sees ‘sharp rise’ in illegal fuel trading amid surging oil prices Hong Kong has the highest petrol prices in the world, according to globalpetrolprices.com statistics dated March 30, giving rise to unlawful makeshift filling stations.
Last month, Hong Kong rolled out subsidies for diesel-powered public and commercial vehicles , as fuel costs soared worldwide over the US and Israel’s war on Iran and the blocking of the Strait of Hormuz shipping lane. A petrol station in Hong Kong. Photo: Kyle Lam/HKFP. Under the Dutiable Commodities Ordinance (Cap. 109), offences connected to the dealing with, possession of, selling or buying of illicit motor spirit attract a maximum penalty of HK$1 million and imprisonment for two years.
It is also an offence under the Fire Services (Fire Hazard Abatement) Regulation (Cap. 95F) to possess or control any controlled substance for the business purpose of transferring it into vehicle fuel tanks. Repeat offenders face a fine of up to HK$200,000 and imprisonment for one year.
Smugglers, meanwhile, face a maximum fine of HK$2 million and imprisonment for seven years.