Government Moves to Reduce Pressure on Households
The Royal Government of Cambodia has stepped in to ease the rising cost of living by cutting additional taxes on gasoline and diesel, offering much needed relief to citizens facing higher global fuel prices. The decision, announced under the leadership of Hun Manet, reflects a proactive approach to support everyday livelihoods as energy costs continue to climb worldwide. By lowering the tax burden, the government aims to stabilize domestic fuel prices and reduce financial strain on families and businesses that rely heavily on transportation and logistics.
Continued Subsidies and Price Support Measures
Alongside the tax reductions, the government will maintain its fuel subsidy of 6.5 US cents per litre, ensuring that consumers continue to benefit from direct price support. An additional reduction of 1 US cent per litre will also remain in place due to persistently high international oil prices, with gasoline exceeding 90 US dollars per barrel and diesel surpassing 100 US dollars per barrel. Import duties on fuel will continue to stay at zero, further reinforcing the government’s commitment to keeping fuel costs manageable during a volatile global energy market.
Significant Tax Cuts on Fuel Products
To strengthen these efforts, the government has taken further steps by reducing additional taxes on both gasoline and diesel to zero. The special tax on diesel has been cut from 4 percent to zero, while the value added tax on gasoline and diesel has been lowered from 10 percent to 4 percent, with the remaining 6 percent absorbed by the state. These measures represent a substantial fiscal intervention designed to cushion the impact of rising oil prices and maintain economic stability across key sectors.
Updated Fuel Prices Take Effect
Following the implementation of these policies, new fuel prices came into effect from March 20, 2026 and will remain in place until further notice. Regular gasoline is now priced at 5,400 Riel, approximately 1.35 US dollars per litre, while diesel stands at 6,700 Riel, or about 1.67 US dollars per litre. These adjusted prices reflect the combined impact of subsidies, tax reductions, and government intervention aimed at protecting consumers from global price fluctuations.
Conclusion
Cambodia’s decision to cut fuel taxes and maintain subsidies highlights a clear commitment to supporting its people during a period of rising global energy costs. By absorbing part of the tax burden and stabilizing fuel prices, the government is helping to ease daily expenses while safeguarding economic activity. As global oil markets remain unpredictable, these measures provide a crucial buffer that supports both households and businesses across the country.
Source: AKP