Cambodia Expands Fuel Tax Cuts as Rising Oil, Freight Costs Add Pressure on Consumers

PHNOM PENH, July 29, 2026 (KPT) – Cambodia has expanded tax relief on fuel as rising global oil prices, freight and insurance costs push up prices at the pump, officials said Tuesday, with the government stepping up measures to cushion households from sharper increases.

Under a joint announcement by the ministries of economy and finance, commerce, and mines and energy, regular gasoline rose by 250 riel to 4,550 riel ($1.13) per litre, while diesel increased by 300 riel to 5,250 riel ($1.30), effective July 28 through August 4.

The government said it would maintain a 6.5‑cent‑per‑litre reduction and provide an additional one‑cent cut as international gasoline prices climbed above $90 per barrel and diesel above $100. Customs duties on fuel remain at zero, while additional taxes on gasoline and diesel have also been reduced to zero. The special tax on gasoline has been halved to 15 percent, while the rate on diesel has been cut from 4 percent to zero.

Value‑added tax on gasoline has been lowered from 10 percent to 4 percent, while VAT on diesel has been eliminated. The government is absorbing the remaining VAT burden, which officials said costs state revenue about $50 million per month.

Prime Minister Hun Manet approved the measures to protect consumers from sharp price shocks, as Cambodia faces renewed pressure from international energy markets after weeks of declining domestic prices. Fuel distributors have asked the government to review the retail pricing formula, including proposals to use the Mean of Platts Singapore benchmark.