Diesel prices in Cambodia have more than doubled since the outbreak of the Middle East conflict, the Ministry of Commerce reported on Friday. According to the ministry, a liter of diesel now costs 8,100 riels ($2.03), marking a 110 percent increase from 3,850 riels ($0.96) at the end of February.
The surge in fuel costs has also affected other energy products. Regular gasoline is currently priced at 5,500 riels ($1.37) per liter, a 42.8 percent rise from February levels. Liquefied Petroleum Gas (LPG) has seen a 95 percent increase, reaching 3,900 riels ($0.97) per liter from 2,000 riels ($0.50) just two months ago.
In response to the rapid price hikes, the Cambodian government has implemented several measures to ease the financial burden on consumers. On March 20, import duties and taxes on fuel products were reduced, followed by a decision on March 28 to lower import duties on electric vehicles (EVs), plug-in hybrid vehicles (PHEVs), electric stoves, and solar-powered devices. These moves aim to encourage alternative energy use and curb reliance on imported petroleum.
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Cambodia remains heavily dependent on fuel imports, as the country’s offshore oil reserves have yet to be exploited. This reliance makes it particularly vulnerable to fluctuations in global oil markets, especially amid ongoing geopolitical tensions in the Middle East that have driven international fuel prices upward.
The aviation sector has also been affected. On March 31, a spokesperson for the State Secretariat of Civil Aviation confirmed that 18 out of 36 airlines operating in Cambodia raised ticket prices due to increased fuel costs. Domestic airlines raised fares by an average of $21, while foreign carriers implemented average increases of about $28, based on flight distance, through fuel surcharges.
Experts warn that if the Middle East conflict continues, fuel prices in Cambodia could remain elevated, placing further strain on households and businesses. The government’s recent measures aim to cushion the impact, but analysts say broader energy diversification and domestic production will be essential for long-term stability.
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