English
Cambodia’s fuel price hike linked to global oil rates
Petrol prices in Cambodia have soared since the beginning of this year with experts suggesting that it is linked to the rise of international crude oil prices, high demand in the Chinese gasoline market and seasonal demand in European markets.
The retail selling price of petrol in the Kingdom from January 16-31 has been set at 4,350 riel ($1) per litre of regular EA92 and 4050 riel per liter of diesel, according to an announcement made by the Ministry of Commerce.
Compulsory for licensed petrol service stations, the pricing serves as a tool to facilitate and enhance cost control nationwide and is calculated semi-monthly by the ministry using data extrapolated from fluctuations in crude oil prices on the international market.
Following a meeting with some of the Kingdom’s fuel distributors, the government agreed to reduce this fortnightly pricing by four US cents to safeguard people’s livelihoods.
Pen Sovicheat, spokesman at the Ministry of Commerce, told Khmer Times, “Cambodia is not an oil-producing country, but still buys refined oil from Singapore and others. The price of petrol is dependent on global prices.”
Last week the international crude oil prices have impacted the rise of local oil prices. The recent rise in oil price is a result of OPEC production that has only 400,000 barrels of crude oil a day.
In the Omicron context, all countries around the world promoted new normal living with a high vaccination ratio. The measures initiated by Cambodian government is encouraging and keeps economic activities rolling.
“We control the amount of oil in the international market from other oil export countries such as the US, South Korea, China. If there are increasing reserve oil production in the near future, I expect that oil price will decrease.”
He said that we determine oil price depending on fluctuations in crude oil prices in the international market.
Cambodian government agreed to reduce this fortnightly pricing by four US cents. In the last 15 days, we considered task work for controlling the increasing oil price.
Talking to Khmer Times, Royal Academy of Cambodia economics researcher Ky Sereyvath said, “The rise in fuel prices was due to increasing international stock price and a spike in oil demand from China as its coal woes mounted.”
With high dollar currency playing a role in decreasing oil price, there is high demand from European markets, especially in the winter season.
Source: https://www.khmertimeskh.com/501009273/cambodias-fuel-price-hike-linked-to-global-oil-rates/