Cambodia Plans Domestic Oil Refinery Amid Rising Global Fuel Prices

PHNOM PENH, Mar. 5, 2026 (KPT) – Cambodia plans to build an oil refinery within three years to supply the domestic market, officials said Wednesday, as global fuel prices surge amid Middle East tensions.

Minister of Mines and Energy Keo Ratanak said the government is in talks with several investment companies, noting the project requires “large economic scale and a sizable market.” Previous plans were delayed because Cambodia’s market was too small to support such investment.

The move comes as the government prepares fuel subsidy measures to cushion households from rising costs. Commerce Ministry spokesperson Pen Sovicheat said domestic fuel prices could climb between 5% and 25%, depending on international trends.

He explained that if global gasoline prices hit $90 per barrel, the government would cut domestic retail prices by one US cent per litre. A similar reduction would apply to diesel if prices reach $100 per barrel.

Fuel prices have already risen. Between March 1 and 10, regular gasoline increased by 100 riels per litre to 3,850 riels, while diesel rose by 50 riels to the same level.

Global oil prices have spiked, with Brent crude up $3.66, or 4.7%, to $81.40 a barrel – its highest since January 2025 – while U.S. West Texas Intermediate gained $3.33, or 4.7%, to $74.56.

The increases followed attacks involving Israel and the United States on Iran that disrupted energy shipments.

Officials said the refinery project and subsidy measures are part of broader efforts to stabilize supply and shield Cambodian consumers from international volatility.