Cambodia sacrifices $50M a month to shield economy from fuel price surge

PHNOM PENH, April 13, 2026 (KPT) – Cambodia is forgoing about 50 million dollars in monthly revenue through fuel tax cuts as the government moves to protect households and businesses from soaring global energy prices, Prime Minister Hun Manet said Saturday.

Speaking at the groundbreaking of the Funan Techo Canal Project Phase II, Hun Manet said the government first introduced targeted subsidies before rolling out broader tax relief, including reductions in import duties and special taxes on fuel.

“The government has taken immediate steps to ease the burden on citizens during this difficult period,” he said, noting the measures have sharply reduced state revenue.

Officials said the state owned electricity sector has already spent 35 million dollars in recent weeks to prevent tariff hikes, with further support expected if global oil prices remain high.

Despite international prices exceeding 90 dollars per barrel for gasoline and 100 dollars for diesel, domestic fuel costs have eased slightly. As of April 10, gasoline (92) was priced at 5,200 riel ($1.30) per liter, down 300 riel, while diesel fell 1,300 riel to 6,900 riel ($1.73).

The cuts aim to stabilize prices, support economic activity and ease cost pressures on transport and logistics.