Cambodia Caps Fuel Prices, Cuts Taxes to Cushion Global Energy Shock

PHNOM PENH, April 18, 2026 (KPT) — Cambodia has introduced a fuel price cap and sweeping tax reductions to shield households and businesses from surging global energy costs, the Ministry of Commerce announced Saturday.

Under the directive, effective from midnight April 18, gasoline is set at 4,950 riel ($1.23) per litre and diesel at 5,700 riel ($1.42). The government said the measures would remain in place until further notice.

Officials confirmed subsidies of 6.5 US cents per litre, with an additional one-cent cut triggered when international oil prices exceed $90 per barrel for gasoline and $100 for diesel.

Import duties on fuel have been scrapped, while special taxes and VAT have been sharply reduced — gasoline tax halved to 15 percent, diesel tax eliminated, and VAT lowered to 4 percent for gasoline and zero for diesel.

The state will absorb part of the cost burden, covering 6 percent of gasoline prices and 10 percent for diesel.

Prime Minister Hun Manet said the package was designed to ease pressure on citizens and businesses facing mounting global market volatility.

Cambodia’s move comes as governments across Asia grapple with rising energy costs driven by geopolitical tensions and supply disruptions. The country, which relies heavily on imported fuel, has previously used subsidies and tax adjustments to stabilise domestic prices.