PHNOM PENH (Bernama): Thousands of workers driving Cambodia’s informal sector and the gig economy are feeling the pinch following the surge in fuel prices.
Energy prices remain elevated in the country this week, largely due to the volatile international oil and gas markets following the war in West Asia.
Workers in the informal sector and the gig economy, including food stall vendors, auto-rickshaw drivers, last-mile food delivery services, and motor taxis, are beginning to suffer financial hardship due to costly fuels.
"Cambodia imports 100 per cent of fuel, so there is much more impact. The rising fuel price is considered the highest in the world, with about 70 to 80 per cent for both diesel and petrol.
"The main impact of rising fuel costs is on the transportation, farming, and production sectors.
"The most impacted are those in the rural areas, farmers, people in the informal and the gig economy, like tuk-tuk (auto-rickshaw) and food delivery,” Phnom Penh-based independent socio-economic researcher Dr Chey Tech told Bernama.
The Ministry of Commerce last Friday announced new pricing for major fuels such as diesel, petroleum, and Liquefied Petroleum Gas (LPG), and began enforcing it the next day.
Diesel prices rose to 8,100 riel (RM8.19) per litre, regular petrol (Gasoline 92) costs 5,500 riel (RM5.05) per litre, and LPG costs 3,900 riel (RM3.94) per litre.
According to the International Labour Organisation's estimates in 2024, there are about six million workers in Cambodia’s informal sector which includes casual, temporary, and seasonal workers, who lack social protection coverage or other employment benefits.
The volatile fuel market will directly affect about 20,000 auto-rickshaw drivers in Phnom Penh and roughly 100,000 people in the gig economy. Almost 90 per cent of auto-rickshaws rely on LPG.
Workers in the gig economy, most of whom engage in digital platforms such as food delivery, ride-hailing platforms, and quick-commerce (retail grocery or pharmaceutical speed delivery), will also bear the brunt of the rising fuel costs.
The export-dependent kingdom relies heavily on imported fuel to drive its economy, and the unpredictable fuel market is driving up the cost of living.
"The government should come up with a cash transfer programme for those in rural areas, informal sector, and workers in the transportation sector and gig economy too.
"The cash transfer programme can be similar to what we did during the COVID-19 pandemic to support those in need,” said Tech. -- Bernama
