Commerce ministry predict fuel prices to dip in the short term

RETAIL prices for regular petrol and diesel will decrease slightly for the next 10 days, alongside minor fluctuations in international crude oil prices.

A press release from the Ministry of Commerce on March 11 reported that the retail price of regular petrol had dropped to 4,250 riel ($1.049) per litre, a decrease from 4,300 riel ($1.061) 10 days prior. Diesel prices also fell to 4,150 riel ($1.024) per litre, down from 4,200 riel ($1.036).

The ministry stated that the reduction adheres to principles established by former Prime Minister Hun Sen, aimed at easing the lives of citizens. With contributions from Cambodian fuel distributors, incumbent Prime Minister Hun Manet has endorsed a continued reduction in fuel prices by $0.065 per litre.

“Therefore, from March 11 to 20, retail prices will be reduced to 4,250 riel [$1.049] per litre for regular petrol and 4,150 riel [$1.024] for diesel,” announced the ministry.

US-based business news channel CNBC reported on March 7 that oil prices had marginally declined the previous day, reversing some gains from the previous session. The WestTexasIntermediate(WTI) contract for April dropped by $0.2, or 0.25%, settling at $78.93 a barrel. May Brent futures decreased by $0.21, or 0.25%, to $82.77 a barrel.

The dip occurred as US crude and the global benchmark rose over 1% that day, following US Federal Reserve (Fed) chairman Jerome Powell's announcement to the US Congress. He indicated that interest rates, having likely peaked, are expected to decrease this year. However, the Fed remains cautious due to an uncertain economic outlook.

In 2023, Cambodia spent over $2.17 billion on diesel and petroleum imports, a 7.6% reduction from the previous year, as per the General Department of Customs and Excise (GDCE). Diesel imports constituted $1.32 billion, an increase of 12.2%, while petroleum imports marginally dropped by 0.26% to $850 million.

The Ministry of Mines and Energy predicts that by 2030, the Kingdom’s demand for oil and gas products will reach 4.8 million tonnes, a considerable rise from the 2.8 million recorded in 2020.