Cambodia prepares fuel subsidies amid concerns over rising global oil prices

By: Son Minea/Leng Deth

PHNOM PENH, March 5 (KPT) – Cambodia’s government said Wednesday it is preparing measures to subsidise fuel prices if global oil costs rise sharply due to tensions in the Middle East.

The Ministry of Commerce said the plan aims to ease the financial burden on consumers should international oil prices increase significantly.

Pen Sovicheat, secretary of state and spokesperson for the ministry, said domestic retail fuel prices could rise between 5 and 25 percent depending on global market developments.

He said the government would consider reductions if international prices reached certain thresholds.

If petrol rises to about $90 per barrel, the government could cut the domestic retail price by one US cent per litre, Sovicheat said. A similar reduction would apply to diesel if global prices reach $100 per barrel.

Analysts warned that geopolitical tensions could push prices higher. Chey Tech, a geopolitical and economic analyst, noted Iran’s announcement of the closure of the Strait of Hormuz – a strategic shipping route through which about one-fifth of the world’s oil supply passes – following attacks involving Israel and the United States.

If the conflict continues, he said, oil prices could approach $100 per barrel, potentially contributing to higher inflation.

Fuel prices in Cambodia have already edged up. From March 1 to 10, the retail price of regular petrol rose by 100 riels per litre to 3,850 riels, while diesel increased by 50 riels to the same price, according to official figures.

Meanwhile, international oil prices have climbed amid growing tensions. Brent crude rose $3.66, or 4.7 percent, to $81.40 a barrel, its highest level since January 2025. US West Texas Intermediate crude gained $3.33, or 4.7 percent, to $74.56.