Cambodia's Fuel Crisis Eases Fragilely Amid Global Price Surge

The fuel crisis in Cambodia marks a fragile lull: out of over 2,000 initially paralyzed stations and depots, only more than 400 remained closed as of March 13, 2026, awaiting new deliveries delayed by the global price surge.

Cham Nimul, Minister of Commerce, is steering a coordinated response to this imported shortage, amplified by tensions in the Middle East. This situation, which arose after massive inspections, highlights the structural vulnerability of a kingdom without domestic refineries.

Massive Inspections and Accelerated Reopenings

An interministerial task force – bringing together provincial departments of Mines and Energy, Commerce, and the General Directorate of Consumer Protection (CCF) – conducted on-site inspections of most of the 6,300 registered stations across the country. These unannounced checks allowed the majority to reopen after confirming compliance, praising the exemplary cooperation of operators. The ministry urges them to report any supply blockages immediately for swift resolution via logistical facilities and emergency imports coordinated with the private sector.Cham Nimul played a central role at a recent seminar, warning that any speculative stockpiling – aimed at profiting from price hikes – would result in severe fines or immediate license revocation.Meanwhile, farmers, logistics workers, and citizens are urged to strictly ration consumption for essential needs, and to alert local authorities – such as communal agriculture agents – or relevant ministries without delay in case of critical shortages. This proactive approach aims to ensure priority distribution to vital sectors.

Structural Dependence on Fuel Imports

Without operational refineries or domestic exploitation of its potential offshore reserves, Cambodia imports 3 million tons of fuel annually via the port of Sihanoukville, its main logistics hub. This total dependence exposes the economy to global geopolitical shocks, such as recent disruptions around the Strait of Hormuz.Prices have thus exploded: +35% for regular gasoline, reaching 5,200 riels per liter (1.29 USD), and +66% for diesel at 6,400 riels per liter (1.59 USD). These increases come after record spending of 606 million dollars on mineral fuel imports in the first two months of 2026 alone, underscoring the scale of the shock.

Economic Impacts: Households and Sectors Under Heavy Pressure

Modest households, which represent the majority of the population, are absorbing the heaviest blow. About 70% of families devote more than 20% of their monthly budget to transport and energy; the surge translates to 20% increases in moto-taxis in Phnom Penh and food delivery fees, eroding already fragile purchasing power.The 5 million informal workers – taxi drivers, street vendors, small traders – face projected energy inflation of 5-7% by end of March, threatening to plunge an additional 1 million people into extreme poverty without rapid strengthening of social safety nets.In agriculture, the pillar of the rural economy affecting 4 million family farmers, freight and pumping surcharges reach 10-15%, directly threatening rice and rubber yields, two pillars of national exports, with a major risk of falling shipment volumes.The logistics and transport sector, employing 1.2 million drivers and delivery workers, is suffering a 20% margin squeeze, potentially causing breaks in supply chains and local food shortages in urban areas.Tourism, representing 20% of GDP and 2.5 million direct or indirect jobs, faces a 15% rise in fuel costs and a nosedive in bookings, jeopardizing the 2026 season with estimated losses of 500 million dollars.Finally, the textile industry, which generates 80% of exports thanks to 800,000 factory workers, is suffering from imported inflation on energy inputs, risking a loss of competitiveness against Asian rivals, notably Vietnamese.

Toward Precarious Stabilization and Urgent Reforms?

The government, under Cham Nimul's impetus, promises targeted subsidies for public buses and collective taxis, as well as enhanced coordination of emergency imports. However, this lull remains precarious as long as vulnerability to geopolitical shocks – disruptions at Hormuz or oil market fluctuations – persists.In the long term, this crisis calls for urgent diversification: development of local biofuels, incentives for exploiting offshore resources, and investments in electric or rail transport. Without these structural reforms, Cambodia risks new paralyses, hampering its post-pandemic growth and exposing its 17 million inhabitants to recurrent precariousness. The authorities assure transparency and vigilance, but the path to energy resilience promises to be fraught with obstacles.