Cambodia absorbs rising electricity costs to shield consumers from global fuel surge

PHNOM PENH, Mar. 12, 2026 (KPT) — Cambodia will continue to absorb rising electricity production costs despite global fuel pressures, Energy Minister Keo Rottanak said Thursday, stressing the government’s determination to keep tariffs stable for households and businesses.

Rottanak acknowledged that soaring oil prices have placed financial strain on the sector, noting that while Cambodia relies heavily on hydropower and other sources, oil is still used in generation and coal — which accounts for about 30 percent of supply — requires fuel for transport.

“As fuel prices increase, the cost of producing electricity also rises,” he said. “The government has chosen to absorb the additional costs to avoid passing them on to consumers.”

He said the decision was made under Prime Minister Hun Manet’s direction, with the Ministry of Mines and Energy tasked to reassure the public and business community.

Rottanak added that electricity supply remains sufficient and tariffs will be maintained despite global market volatility.

Energy markets have been rattled by conflict involving the United States, Israel and Iran, disrupting refining and transport routes and driving up fuel prices across Asia.

Cambodia has also seen gasoline and diesel prices climb in recent weeks, reflecting broader global trends.