The retail prices of regular-grade petrol and diesel respectively increased by about 2.65 per cent and 10.91 per cent on June 13, according to a notice issued by the Ministry of Commerce.
For the June 11-20 period, the retail selling prices of fuel in the Kingdom have been set at 5,800 riel or $1.43 per litre of regular EA92 (petrol with an octane rating of at least 92) and 6,100 riel or $1.50 per litre of 50ppm diesel (with sulphur content no more than 50 parts per million), said the notice, which contains values in both currencies.
The corresponding rates for June 1-10 were 5,650 riel ($1.39) and 5,550 riel ($1.37) per litre of regular EA92 and diesel, respectively, up from 4,100 riel ($1.00) and 3,750 riel ($0.92) during the period ended December 31, 2021.
Compulsory for licensed filling stations – although usually not strictly enforced for street vendors, the rates are calculated using data extrapolated from fluctuations in crude prices on the international market, and a number of taxes and charges that may be adjusted based on feedback from meetings with local oil importers and other stakeholders.
Ministry spokesman Penn Sovicheat previously noted that as an oil importer, Cambodia must set its fuel rates based on international market trends. The rising oil prices, fuelled by the Russia-Ukraine conflict, have prompted the government to cut taxes on fuel, hence reducing costs and making life a little easier for the people, he said.
Chea Chandara, president of the recently-renamed Logistics and Supply Chain Business Association in Cambodia (Loscba), said the soaring fuel rates would pose an array of difficulties for the transport sector, leading to increases in prices for services.
“Our customers are facing an additional 20 to 30 per cent increase in shipping costs. This is a global crisis that has undoubtedly affected international prices for oil – we still need to use it,” he said.
Even so, transport and supply chain activity has mostly recovered to normal levels, as dictated by demand, Chandara affirmed.
Royal Academy of Cambodia economics researcher Ky Sereyvath predicted that oil prices would maintain an uptrend due to the Ukraine crisis, which he described as a “show of power between the powerhouses”.
This will push up fuel prices and thus the cost of inputs, thereby contributing to global inflation and causing Cambodians to spend more, he said.