Hun Manet Approves Tax Cuts to Keep Fuel Prices Affordable
Hun Manet Approves Tax Cuts to Keep Fuel Prices Affordable
PHNOM PENH, March 20, 2026 — Cambodia has lowered retail fuel prices through continued tax relief and government subsidies, in a move aimed at easing the burden on energy consumption amid rising global energy costs.
According to an official notice, the government will maintain fuel price reductions starting March 20, with gasoline (RON 92) set at 5,400 riel (1.35USD) per litre and diesel at 6,700 riel (1.67USD) per litre until further notice.
The price adjustment follows coordinated action by the Ministry of Economy and Finance, Ministry of Commerce, and Ministry of Mines and Energy, based on fluctuations in regional and global oil markets.
To cushion the impact of high international fuel prices, the government has:
- Continued subsidies of 6.5 US cents per litre
- Provided an additional 1 cent per litre relief amid rising global oil prices
- Reduced import duties on fuel to zero
- Reduced value-added tax (VAT) from 4% to 0 on fuel and from 10% to 4% on diesel, with the government absorbing the remaining 6%
Prime Minister Hun Manet approved the expanded tax relief measures, reflecting a broader strategy to stabilise domestic prices and protect household incomes.
Officials said the measures demonstrate Cambodia’s proactive approach to managing external economic pressures, particularly as global oil prices remain volatile, with gasoline exceeding $90 per barrel and diesel surpassing $100 per barrel in international markets.
The policy is expected to support transportation, logistics and daily living costs, while sustaining economic stability and public confidence.
