Cambodia Moves to Cover 10% VAT on Diesel and LPG

Vehicles queue up at a fuel station in Phnom Penh on March 23, 2026. A major energy supplier in Cambodia has said it will halt sales of liquefied petroleum gas from the start of next month due to supply disruptions resulting from the Middle East war. (Photo by TANG CHHIN Sothy / AFP)

PHNOM PENH, April 6, 2026 — Cambodia’s government has announced it will fully absorb value-added tax (VAT) on diesel and liquefied petroleum gas (LPG) to help ease the impact of rising global fuel prices on households.

In a statement, the Ministry of Economy and Finance said the state would cover the full 10% VAT on the supply of diesel and LPG products, effectively reducing costs for consumers.

The measure comes in response to upward trends in international fuel prices, which have begun to affect domestic markets and living costs, the ministry said.

Officials said the policy is aimed at supporting citizens’ livelihoods by mitigating the financial burden associated with higher energy prices.

The move forms part of broader government efforts to cushion the economic impact of global market volatility, particularly in energy sectors that directly influence transport and household expenses.

Cambodia, like many countries in the region, has been facing pressure from rising fuel costs linked to geopolitical tensions and supply disruptions.

Authorities said additional measures could be introduced if price pressures persist.