Cambodia Investment Review
Cambodia has cut gasoline prices by 700 riels, or about 17 cents, per liter as international fuel prices ease and the government continues subsidies and tax reductions. At 4,350 riels per liter, gasoline is now about 16% above its late-February price of 3,750 riels, just before the Iran war began.
The Ministry of Commerce set the retail price at 4,350 riels, or $1.07, per liter. Diesel was set at 5,300 riels, or $1.30, per liter. The prices took effect at fuel stations nationwide on the afternoon of November 11 and will remain in place through November 21.
In early November, gasoline cost 5,050 riels, or about $1.24, per liter, while diesel was priced at 5,650 riels, or about $1.38. The latest prices were calculated using an exchange rate of 4,084 riels per U.S. dollar, compared with 4,081 riels earlier in the month.
International fuel benchmarks decline
The ministry attributed the price reductions to lower international fuel costs. The Mean of Platts Singapore benchmark for gasoline fell to $0.6903 per liter from $0.8559, while the diesel benchmark declined to $1.0126 from $1.1030. MOPS is a key reference for refined fuel prices across Southeast Asia.
Prime Minister Hun Manet has said the government has spent more than $600 million to limit the impact of rising fuel prices. The government provides a subsidy of 6.5 cents per liter, with an additional one-cent reduction when international prices exceed specified thresholds for gasoline and diesel.
Other measures include customs duty exemptions on fuel imports and reduced special taxes, set at 15% for gasoline and 4% for diesel. Value-added tax has been lowered from 10% to 4% for gasoline and eliminated for diesel.
Oil prices remain volatile
International oil prices have fluctuated amid uncertainty over potential peace negotiations between the United States and Iran. Prices fell by about $3 a barrel on November 10 as markets anticipated that negotiations could ease shipping disruptions through the Strait of Hormuz. The conflict in the Middle East remains unresolved.
By November 11, Brent crude futures had risen $1.28 to $92.77 a barrel, while U.S. West Texas Intermediate crude gained 76 cents to $86.80.
