Sabah Marine police commander Asst Comm Mohammad Pajeri Ali said the suspects, who were in three separate boats, were found with a total of 1,160 litres of petrol when intercepted in waters off Tg Menimpa, Semporna.
He said the suspects, aged from 26 to 40, failed to provide documents showing they were allowed to transport the fuel.
He said they seized the fuel and the three boats for further investigation under the Control of Supplies Act 1961.
ACP Pajeri said that the marine police would continue to monitor smuggling and cross-border crime in the east coast of Sabah during the movement control order period.