In brief
The Cambodian government has committed more than US$600 million in subsidies, including electricity tariff cuts, tax reductions and duty waivers, to offset a 31 % price surge in gasoline and a 47 % rise in diesel. Prime Minister Hun Manet said the measures will stay in place as long as international markets remain elevated. The package also targets electric vehicles and related appliances to mitigate inflation and support economic resilience.
On Thursday, Cambodian Prime Minister Hun Manet announced that the government has injected more than US$600 million in subsidies to shield the domestic economy from soaring global fuel prices, amid Middle East conflicts that sparked a 31 % spike in gasoline and a 47 % rise in diesel. The live address on state‑run TVK aired from Pursat province, where Manet was distributing rice seeds and relief items to households hit by recent flooding.
"To date, we have subsidized more than 600 million dollars to curb rising fuel costs and stabilize electricity prices," the prime minister told viewers. The relief program combines direct electricity‑tariff subsidies with targeted tax cuts, including lowering import duties on oil and gas and reducing tariffs on electric vehicles, plug‑in hybrids, electric stoves and solar‑powered devices.
"Fuel price hikes elevate transportation and production costs, driving up inflation and eroding purchasing power, particularly for food and agricultural products. This ultimately slows down broader economic activity," Thong Mengdavid, deputy director of the China–ASEAN Studies Center at the Cambodia University of Technology and Science, explained to Xinhua.
Data from the Ministry of Commerce showed the retail price of regular gasoline at 5,050 riels (about US$1.24) per litre, while diesel climbed to 5,650 riels per litre—an increase of 46.7 percent compared with pre‑conflict levels in February. The subsidy programme aims to provide a fiscal cushion for low‑ and middle‑income households, informal workers and small‑and‑medium‑sized enterprises, which are most vulnerable to transport and production cost hikes.
Subsidies and Long‑Term Resilience
Manet emphasized that the subsidy policies will remain in effect for as long as global fuel markets remain elevated, citing Cambodia’s total dependence on imported petroleum and diesel. The measures are part of a broader strategy to curb inflation, protect purchasing power and support long‑term economic resilience and growth.
