Airfares rise in Cambodia as fuel costs surge amid Middle East conflict

PHNOM PENH, March 31, 2026 (KPT) — Airfares in Cambodia have begun to climb as airlines respond to surging global fuel prices, officials said Tuesday, underscoring the impact of the Middle East conflict on the travel industry and wider economy.

The State Secretariat of Civil Aviation (SSCA) said ticket prices on 18 of the 36 airlines operating routes to and from Cambodia have increased by an average of $24 per passenger. Carriers have introduced or raised fuel surcharges (YQ) on top of base fares, with adjustments varying according to flight distance and operational costs.

Domestic airlines K6, KT, KR and ZA reported average increases of $21, ranging from $5 to $32.5, while international carriers raised fares by about $28. Officials said the price changes, which took effect on March 27, reflect mounting operational pressures as fuel markets remain volatile.

While gasoline prices in Cambodia have recently eased, diesel — critical for transport and logistics — continues to rise, driving up costs across the aviation sector. Government data shows gasoline (92) retailing at 5,000 riel ($1.25) per liter, while diesel has climbed to 7,200 riel ($1.80) per liter, mirroring global trends where diesel prices have surpassed $100 per barrel.

In response, the government has introduced tax relief measures, including reductions in value added tax (VAT) on fuel and the removal of special taxes on diesel, to ease pressure on households and businesses. Energy Minister Keo Rottanak said authorities are working to maintain stable supply despite tight regional conditions, coordinating closely with suppliers to ensure continued availability.

Industry observers noted that the return of fuel surcharges signals renewed cost pressures on airlines, which had only recently begun stabilizing after pandemic related disruptions. Analysts warned that higher fares could dampen demand for air travel, particularly among price sensitive passengers, even as Cambodia seeks to expand tourism and strengthen regional connectivity.