Logo of Phnom Penh Post newspaper Phnom Penh Post - Petrol price cap to go up in May

Petrol price cap to go up in May

Content image - Phnom Penh Post
The price cap of retail gasoline in Caltex station. Hong Menea

Petrol price cap to go up in May

The price cap of retail gasoline in Cambodia will increase for 10 days this month, according to a Ministry of Commerce announcement which cited fluctuations in the international market as the cause.

Issued by the ministry on Sunday, the announcement stated that the price cap for regular gasoline will climb from 4,100 riel to 4,150 riel by May 21. The price of diesel will rise by 100 riel and hit 4,000 riel by then.

In a press conference on Friday, the Ministry of Commerce sought to dispel rumours that the rising price was connected to the upcoming national elections on July 29.

Seang Thai, spokesman at the ministry, explained that the formula devised for petrol pricing relied heavily on international oil prices, especially the rate it is traded at in Singapore.

The Ministry of Commerce recalculates the retail fuel price cap every 10 days.

Despite the fact that the Kingdom currently fills all of its oil needs by importing, Cheap Sour, spokesman for the Ministry of Mines and Energy, was optimistic last week about how the project to drill on one of the country’s offshore blocks could prove beneficial.

“We hope that the gasoline price in the country will be better than it is now, as we will have both a local oil refinery and oil production,” he said, adding that revenues from the oil production would go toward development of Cambodia’s infrastructure as well as its education and health sectors.

KrisEnergy plans to produce oil from Cambodia’s offshore Block A oil deposit next year and plans to invest more than $30 million in the project this year, according to its 2017 annual report.

The Singapore-based energy company secured a petroleum licence for Block A from the Cambodian government in August last year, allowing it to pull oil from the 3,083-square-kilometre plot in the Gulf of Thailand.

The $1.6 billion project was funded and is being constructed primarily by Chinese state-run firms, and it is unclear if either the refinery or Block A’s oil reserves will benefit Cambodia’s domestic petroleum market.

MOST VIEWED

  • Hun Sen says Kingdom not a 'satellite country'

    Prime Minister Hun Sen said Cambodia had sent diplomatic notes to various embassies demonstrating its stance and clarifying allegations that the Kingdom is a satellite country of China which will allow it exclusive access to the Ream Naval Base in Preah Sihanouk province. The response

  • Vast Prince Manor fun park opens to much fanfare in Kandal

    Chinese-owned Prince Culture and Development Co Ltd officially launched the $85 million Prince Manor entertainment centre in Kandal province on Wednesday. Prince Manor is located along National Road 1, 20km from the centre of Phnom Penh. It is the first major theme park project in Cambodia and

  • Angkor provides ‘valuable’ water storage

    The Apsara National Authority (ANA) has stored millions of cubic metres of water at reservoirs in the Angkor area after Cambodia experienced a series of rainstorms over the last few days. The storing of the water, besides serving temple conservation, will also be used to

  • Floods prompt evacuations in Kampong Speu

    Rain-induced floods and water flowing from Kampong Speu province have submerged the houses of 1,527 families living close to the Prek Thnot River in Spean Thma, Tien, Kong Noy and Roluos communes in Phnom Penh’s Dangkor district, according to data from local authorities. Spean Thma

  • Serving coffee with a side of robots

    The eye-catching glass building surrounded by greenery at the intersection of Streets 371 and 2002 in Phnom Penh’s Sen Sok district is more than just another coffee shop where you can while away a few hours. UrHobby House cafe is filled with robots and characters from

  • Cintri strike ends, workers’ contracts to be terminated

    CINTRI (Cambodia) Ltd rubbish collectors who have been on strike for the past 13 days agreed to return to work starting Wednesday evening after the company agreed to terminate their contracts at the end of January next year and provide seniority payments and other benefits to