Gasoline Falls, Diesel Climbs Despite Tax Relief

PHNOM PENH, March 29, 2026 (KPT) — Cambodia’s fuel market is showing a widening split, with gasoline prices dropping while diesel continues to climb despite government tax relief aimed at easing consumer costs.

The latest ministry announcement set retail gasoline (92) at 5,000 riel (US$1.25) per liter, down 450 riel, while diesel (10ppm) rose 100 riel to 7,200 riel ($1.80).

Authorities said the divergence reflects volatility in global markets, where diesel benchmarks have topped USD 100 per barrel compared with gasoline above USD 90.

To cushion the impact, the government is maintaining subsidies of 6.5 US cents per liter, plus an extra 1 cent reduction linked to global oil prices. Prime Minister Hun Manet has also approved tax cuts, slashing VAT on fuel from 10% to 4% and eliminating the special tax on diesel.

Despite these measures, diesel remains under upward pressure, raising concerns for transport and logistics sectors that rely heavily on the fuel and face knock‑on costs for goods and services.

By contrast, the gasoline decline offers some relief to private motorists, underscoring the uneven effect of global energy trends on Cambodian consumers.

Fuel prices are adjusted under a government formula tied to international markets, though local stations may offer lower rates depending on competition.