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Cambodia: Gas stations must follow calculated ceiling price
The Ministry of Commerce yesterday called upon all gasoline stations in the country to sell their fuel based upon the inter-ministries calculated ceiling price.
The call was made following the latest Iranian missile attacks on US targets in Iraq, which has created an extremely volatile global oil price.
In a statement issued yesterday, the Ministry said that because of the current global market situation, the oil price may change uncontrollably.
“Although plunging global oil prices, Ministry of Commerce will calculate the retail price of gasoline according to joint “prakas” (directive) by the Ministry of Economy and Finance and the Ministry of Industry and Handicraft. The ceiling price is based on the global oil price calculated every 15 days, this is what we have chosen to implement in keeping the stability of the social economy in Cambodia,” the Ministry stated.
“As informed, retail gasoline companies in Cambodia should kindly cooperate in implementing what has been done so far with efficiency,” the statement read.
Kim Samoeun, deputy director-general of Savimex, one of the gasoline companies in Cambodia, said yesterday that he has noted the price has not changed since earlier this year.
“The retail price is sold out following the updated ceiling price and the global oil price has not made for any changes to the local oil price,” Mr Samoeun said. “But over the long term, it is difficult to predict whether the price will change.”
The retail price of petroleum is affected by price fluctuations in global markets, as Cambodia depends solely on petroleum imports. The Cambodian Government in 2016 set out a formula which is used for the calculation of the retail price of gasoline. This has been an agreement with all petroleum distributors in the country. Price ceilings are calculated according to a formula based on the average Means of Platts Singapore (MOPS) plus taxes, net profit, VAT and operating costs. Additionally, the government provides $0.04 per litter as a subsidy to the retail price after calculation.
The Ministry of Commerce provides price updates every 15 days and stations will be fined $1,000 if they charge more than the set price. Cambodia currently purchases petroleum from Vietnam, Singapore and Thailand. The 15-day price ceiling from Jan 1 to 15 according to the announcement of inter-ministries, is currently at 3,750 riel a litre for petrol and 3,650 riel for diesel.
Source: https://www.khmertimeskh.com/50678435/gas-stations-must-follow-calculated-ceiling-price