PHNOM PENH, Oct. 7 (Xinhua) -- Cambodian Prime Minister Hun Manet said on Wednesday that the government has injected nearly 500 million U.S. dollars in subsidies to cushion the domestic impact of soaring global fuel prices driven by ongoing conflicts in the Middle East.
"To date, we have subsidized almost 500 million dollars to curb rising fuel costs and stabilize electricity prices for our citizens," he said during a ceremony celebrating the 80th anniversary of the University of Health Sciences in Phnom Penh.
The prime minister emphasized that these subsidy programs will continue as long as global fuel markets remain elevated.
He said the financial relief has been delivered through direct subsidies on electricity tariffs alongside targeted tax relief. This includes lowering import duties and taxes on oil and gas, as well as reducing tariffs on electric vehicles (EVs), plug-in hybrid electric vehicles (PHEVs), electric stoves, and solar-powered devices.
According to the Ministry of Commerce, the retail price of regular gasoline in Cambodia stood at 5,150 riels (about 1.27 dollars) per liter on Wednesday, a 33.7 percent surge compared to pre-conflict levels. Meanwhile, diesel prices reached 5,650 riels per liter, marking a 46.7 percent spike.
Thong Mengdavid, deputy director of the China-ASEAN Studies Center at the Cambodia University of Technology and Science, said that surging energy costs directly inflate local transportation and production expenses.
"This trend drives domestic inflation and erodes consumer purchasing power, particularly impacting food and agricultural products," he told Xinhua.
He added that these government subsidies act as a crucial fiscal cushion, ensuring long-term economic resilience and national growth.
The Southeast Asian nation relies entirely on imported petroleum and diesel, as its offshore oil reserves remain unexploited. ■
