The price of regular gasoline has dropped to 4,000 riel per litre, marking the most significant decrease in nearly two years. On September 1, the Ministry of Commerce announced the latest fuel prices, which will be in effect from September 1-10.

During this period, the price of regular gasoline is set at 4,000 riel per litre, a decrease of 150 riel, while diesel will be set at 3,850 riel per litre. 

The figures are based on average fuel prices on the international market, said a ministry statement.

These adjustments follow a directive from Prime Minister Hun Manet, who approved a reduction in retail fuel prices in Cambodia by 6.5 cents per litre, continuing a policy that has been in place for several years.

Hong Vanak, an economic researcher at the Royal Academy of Cambodia, noted that the price of regular gasoline had not fallen as low as 4,000 riel in nearly two years, dating back to late 2022 or early 2023.

He explained that the fluctuation in prices corresponds with global production levels and market demand. Additionally, the increasing production of electric vehicles, which reduces the demand for fuel, as well as the use of smaller-engine cars or hybrid vehicles that consume less fuel, have contributed to the decline.

Another factor in the price drop could be the increased supply of crude oil from Russia and large-scale sales by China, Russia's ally, Vanak suggested.