Chinese customs bust diesel smuggling gang

SHENZHEN - Customs in south China have busted a gang that smuggled diesel from Hong Kong to cities on the Chinese mainland.

Thirty-eight suspects were arrested in the smuggling case, according to the Shenzhen customs in Guangdong Province.

A total of 94.67 tonnes of smuggled diesel were seized and preliminary investigation showed the case might involve up to 150 million yuan (22 million US dollars).

Shenzhen customs said it was the largest smuggling case uncovered in recent years.

Commonly known as "red oil," the diesel used for industrial and maritime fuel in Hong Kong is duty-free with red additives. It was wholesaled between 5,200 to 5,500 yuan per tonne, while a tonne of non-duty-free diesel costs about 2,000 yuan more in mainland cities.

Further investigation is underway.