Cambodia sees big drop in petrol prices

PHNOM PENH (Xinhua): Cambodia’s retail gasoline price has strongly declined for the first time because of the fall on the international market, the Khmer Times reported on Thursday (April 2).

According to the Commerce Ministry’s oil price lists, which have been set twice per month, the cost of regular petrol sold between April 1-15 is at 2,350 riels (US$0.58) per litre and diesel at 2,450 riels (US$0.6) per litre.

Compared with the last 15 days, the price of regular petrol declined by 23 per cent from 3,050 riels per litre, and the price of diesel dropped by 12.5 per cent from 2,800 riels per liter, according to the report.

Commerce Ministry’s spokesman Seang Thay said that based on the international market price and demand, which are affected by the Covid-19 pandemic, Cambodia has seen significant price declines.

"Our price is based on the international market. The outbreak of Covid-19 has delayed all production while people are advised to stay home, so there will be lower demand, ” he said.

The Covid-19 pandemic reduced the global oil price to US$22 per barrel this week from US$55 earlier in March, according to the spokesman.

While other consumer products such as food have seen high demand globally because of concerns over Covid-19 and panic buying, the need for oil has fallen, which sent the price down.

"In terms of price, now it is beneficial for consumers, ” Thay said.

The kingdom’s petrol price is set base on agreement between the Ministry of Commerce and retail gasoline companies base on the international market.

Cambodia is expected to be able to extract its first drop of oil by the end of this year under the operations of Singapore-based firm KrisEnergy, which operates Cambodia’s offshore Block A oil deposit. - Xinhua