Cambodia Raises Fuel Prices as Global Oil Costs Climb, Maintains Tax Relief to Cushion Consumers

PHNOM PENH, July 21, 2026 (KPT) – Cambodia has raised retail fuel prices after more than a month of declines, reflecting higher international oil costs, while maintaining tax cuts and subsidies to shield households from rising energy bills, officials said Tuesday.

Under a joint announcement by the ministries of economy and finance, commerce, and mines and energy, the new rates take effect July 22. Regular gasoline will retail at 4,300 riel (US$1.06) per litre, up 400 riel from last week, while diesel will rise 650 riel to 4,950 riel (US$1.22). The government said the revised prices were calculated using its fuel pricing formula with oil companies and reflected regional and global market movements.

Despite the increase, Phnom Penh will continue tax relief measures, including subsidies of 6.5 cents per litre, an additional one‑cent reduction triggered by elevated global prices, zero import duties, and reduced excise and VAT rates. Excise tax on gasoline has been cut from 30% to 15%, while diesel excise has been eliminated. VAT has been lowered to 4% on gasoline and zero on diesel.

Officials said the measures aim to offset the impact of global oil price volatility and rising freight costs. Fuel distributors have asked the government to review the retail pricing formula, proposing use of the Mean of Platts Singapore benchmark and removal of the mandatory one‑cent retail discount. The proposals are under review.

Prime Minister Hun Manet has said the tax relief reduces state revenue by about US$50 million per month but is necessary to protect consumers from sharp price shocks.