Cambodia Cuts Fuel Prices Below 5,000 Riel Amid Tax Relief Measures

PHNOM PENH, June 2, 2026 (KPT) — Cambodia has lowered retail fuel prices to below 5,000 riel per liter as the government extends tax relief and subsidy measures to shield consumers from global energy market volatility.

A joint statement from the ministries of Economy and Finance, Commerce, and Mines and Energy said gasoline prices have fallen to 4,850 riel per liter, down 400 riel from the previous week, while diesel prices also dropped to 4,850 riel, marking a decrease of 450 riel. The revised prices took effect on June 2 and will remain in place until further notice.

The adjustment reflects regional and international market conditions as well as agreements reached with fuel distributors. Despite the latest decline, Cambodia continues to maintain subsidies equivalent to 6.5 U.S. cents per liter, along with an additional one-cent reduction, to stabilize domestic prices amid uncertainty in global oil markets.

The government has also kept fuel import tariffs at zero, halved special taxes on gasoline, and eliminated them entirely for diesel. Value-added tax on gasoline has been reduced to 4 percent, while VAT on diesel has been fully removed, with the state absorbing the remaining burden.

Mines and Energy Minister Keo Rottanak said last month that the government is forfeiting between $55 million and $70 million in monthly revenue through tax and duty reductions aimed at cushioning consumers and businesses from global energy shocks.