In brief
Cambodia’s government has injected more than $600 million in subsidies to protect households and businesses from rising fuel and electricity costs. Prime Minister Hun Manet announced the scheme, which includes tariff cuts, duty waivers and tax relief, during a live‑televised address in Pursat province. The measures are intended to remain in place while global fuel markets remain elevated.
Phnom Penh, Nov. 5 (Xinhua) — Cambodian Prime Minister Hun Manet announced that the government has channeled more than $600 million in subsidies to curb surging fuel and electricity costs caused by Middle East conflicts.
During a live‑televised address on state‑run TVK, Hun Manet said the financial relief is being delivered through a mix of direct electricity tariff cuts and targeted tax reductions. He added that the subsidies – covering fuel, gas and electric vehicle duties – will remain as long as international markets stay elevated.
Prime Minister Manet was speaking in Pursat province, where he was also distributing rice seeds and other relief items to households recently affected by severe flooding. The announcement followed data that the retail price of regular gasoline rose by 31 percent to 5,050 riels (about $1.24) per liter, while diesel climbed 46.7 percent to 5,650 riels per liter.
"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," said Thong Mengdavid, deputy director of the China‑ASEAN Studies Center at the Cambodia University of Technology and Science.
The subsidy program focuses on lowering import duties on oil and gas and reducing value‑added tax on electric and plug‑in hybrid electric vehicles, electric stoves and solar‑powered devices. It aims to provide fiscal stability for low‑ and middle‑income households, informal workers and small‑ and medium‑sized enterprises that rely heavily on imported petroleum.
While the Prime Minister confirmed the package’s scale and scope, residents and analysts are watching how the policy will unfold over time as global fuel prices continue to fluctuate.
