Cambodia Bolsters Fuel Supplies Amid Global Oil Tensions

In a context of tense oil markets, exacerbated by disruptions in the Red Sea and Asia's dependence on the Strait of Hormuz, Cambodia is doubling down on efforts to secure its fuel supplies. Her Excellency the Minister of Commerce, Cham Nimul, recently reassured the population while calling for energy sobriety.

A welcome arrival, but imports still insufficient

A new tanker carrying 3,400 tons of liquefied petroleum gas (LPG) has docked in Cambodia, bolstering national reserves, announced "Her Excellency the Minister." However, current imports—limited to four or five ships per month—remain below normal levels of seven to eight, due to the tense global situation and supply difficulties. "The markets are under pressure, with Asia particularly affected by logistical disruptions via the Strait of Hormuz," she emphasized, referencing Red Sea attacks that, according to the International Energy Agency (IEA), have reduced global oil traffic by 12% since late 2023 (IEA report, March 2026).

The minister urged citizens and businesses to consume responsibly, while affirming that Phnom Penh is closely collaborating with national and international partners to stabilize stocks. Despite uncertainty from ongoing conflicts, the government continues its efforts to meet the country's needs.

Subsidies and tax relief to cushion the shock

The Royal Government of Cambodia is deploying an arsenal of measures to ease the burden on households. Among them, ongoing fuel price subsidies: a reduction of 6.5 US cents per liter, supplemented by an additional cut of 1 cent to counter rising global prices. Customs duties on fuel imports have been set at zero dollars.

Prime Minister Samdech Moha Borvor Thipadei Hun Manet has approved major tax exemptions: additional taxes on gasoline and diesel drop to zero, the special rate on diesel falls from 4% to 0%, and VAT on these products is reduced from 10% to 4%, with the state absorbing the remaining 6%. These measures, inspired by International Monetary Fund (IMF) recommendations for developing countries facing oil shocks (IMF report, January 2026), aim to contain inflation.

Support for workers and reductions in customs tariffs

On the Prime Minister's instructions, the Ministry of Labor and Vocational Training has negotiated with stakeholders a monthly subsidy of $2.50 per worker to cover transport costs—a targeted measure to preserve employees' purchasing power.

Finally, to curb rising prices of consumer goods, the government is reducing customs tariffs and import-export duties on strategic products: electrical appliances, solar systems, electric vehicles, and other goods. These adjustments, recorded in a sub-decree, will take effect on April 1, 2026, according to an official announcement relayed by the Khmer Times news agency (March 29, 2026).

These initiatives demonstrate Cambodia's resilience in the face of a global energy crisis, even as market volatility—with Brent crude flirting around $85 per barrel according to Bloomberg (March 30, 2026)—demands heightened vigilance.