Logo of Phnom Penh Post newspaper Phnom Penh Post - Fuel prices to fall as price caps revealed

Fuel prices to fall as price caps revealed

A driver fills up at a Sokimex petrol station in 2013.
A driver fills up at a Sokimex petrol station in 2013. Heng Chivoan

Fuel prices to fall as price caps revealed

The government announced a set of price caps on retail petroleum products yesterday based on the application of its new fuel-pricing mechanism.

The maximum retail price of gasoline was set at 3,050 riel per litre, with premium capped at 3,150 riel per litre and diesel at 2,700 riel per litre, according to a press release from the Ministry of Commerce.

The government proposed the fuel-pricing mechanism in January after months of negotiations between state officials and oil companies aimed at establishing a fuel-pricing scheme responsive to changes in global oil prices.

The formula is calculated on the average Means of Platts Singapore (MOPS) benchmark, adding in taxes, VAT and local operating costs.

The mechanism requires Total, Caltex, PTT, Sokimex and Tela to keep their operating costs at or below $0.23 per litre. Meanwhile, Savimex and BVM are required to maintain operating costs at or below $0.18 per litre, while LHR’s limit is $0.15.

According to a prakas issued on March 9, the Commerce Ministry will re-calculate the price caps every 10 days, namely on the 1st, 11th and 21st of the month.

The government will also meet petroleum companies every six months to reconsider the formula’s costs and structure.

Retailers found selling gasoline at prices above the cap will be fined $1,000, according to the prakas.

The new price cap effectively drops the price of gasoline, which was retailing for about 3,250 riel per litre at most outlets in Phnom Penh last week.

MOST VIEWED

  • Massive stingrays may live in Mekong’s deep pools

    US scientists have suggested that unexplored deep pools in the Mekong River in an area of Stung Treng could potentially be home to significant populations of giant freshwater stingrays, one of the world’s largest freshwater fish species. This comes as a fisherman hooked a 180

  • CCC team off on US business trip

    The Kingdom’s leading economists and private sector representatives have called on the US to renew its tax preferential status for Cambodian exports, as a Cambodia Chamber of Commerce (CCC) delegation departed for a weeklong business visit to the US, where they will meet with

  • PM takes time to meet, greet Cambodians living in the US

    After landing in the US ahead of the ASEAN-US Special Summit, Prime Minister Hun Sen was received by over 1,000 Cambodian-Americans including political analysts who welcomed him with greetings, fist bumps and selfies. Hun Sen also met with analyst Mak Hoeun, who had allegedly spoken ill

  • Khmer cinema classics back on big screen for free at WB Arena’s outdoor movies series

    On a recent Saturday evening at WB Arena, Bunsong was enjoying a tasty BBQ meal with his family after work on the long tables that had been arranged out in front of the restaurant as they watched a Khmer action movie on a big outdoor

  • PM heads to Washington for ASEAN-US special summit

    Regional and international issues and how to bring the ASEAN-US partnership to another level will be discussed at length as Prime Minister Hun Sen and his ministers arrive in Washington, DC, for a special summit on May 12-13. During the trip, Hun Sen and ASEAN

  • National Assembly refutes EU resolution

    The National Assembly (NA) has hit back at a European Parliament resolution condemning the political and human rights situation in Cambodia, calling it another display of the Parliament’s “double standards”. Key points of the resolution include a warning that the Parliament could exclude the