Hun Manet Announces Monthly Fuel and Appliance Subsidies

Prime Minister Hun Manet announced on July 21 that the Cambodian government is providing between 50 and 60 million U.S. dollars in monthly subsidies to protect consumers from fuel price spikes. These spikes are driven by conflict in the Middle East, leaving Cambodia vulnerable as it relies entirely on imported petroleum and diesel. To mitigate inflation, the government is implementing tax cuts on fuel and electrical appliances, along with VAT reductions and customs duty waivers.

The Ministry of Commerce reported a sharp rise in retail fuel prices on Tuesday. Regular gasoline increased 10 percent to 4,300 riels ($1.06) per liter, while diesel prices rose 15 percent to 4,950 riels ($1.22) per liter compared to the previous week. The subsidies aim to ease the financial burden on the public while the country's offshore oil reserves remain unexploited.