PM calls on gov’t to consider oil reserve

PM calls on gov’t to consider oil reserve

Prime Minister Hun Sen has asked his government to consider stockpiling oil during the price downturn.

Speaking at a student graduation ceremony at Koh Pich Convention Center yesterday, the PM said, in anticipation of prices increasing in the future, the government would look into the prospects of building up a reserve of oil during the current slump.

“‘I recommended it to the minister of economy and finance already before I went to Davos to study the possibility of whether we can release some capital to buy a stockpile, in order to keep it as a reserve so that we will benefit [when it increases in the future],” he said. “As we are a non-oil producing country, we really want to see the oil price kept low.”

Cambodia imports all its oil from Thailand, Vietnam and Singapore. Crude oil prices, which fell from $115 a barrel in June of 2014 to a six-year low near $45 this January, recently bounced back to $52.30.

Suzuki Hiroshi, chief economist for the Business Research Institute for Cambodia, said that Japan had built up a strategic reserve following “oil shocks” in the 1970s and 1980s and Cambodia would do well to follow suit.

“This strategic reserve could be released at the time of crisis and/or very drastic fluctuation of oil price,” he said. “I hope that the Cambodian government could study these Japanese experiences, challenges and measures, because both countries are in the same position. They have to import all the oil products,” he said.

MOST VIEWED

  • Cambodia-Thailand rail reconnected after 45 years

    A railway reconnecting Cambodia and Thailand was officially inaugurated on Monday following a 45-year hiatus, with the two kingdoms’ prime ministers in attendance at the ceremony. On the occasion, Cambodian Prime Minister Hun Sen and Thai Prime Minister Prayut Chan-o-cha travelled together from Thailand’s

  • Thousands attend CNRP-organised pro-democracy vigil in South Korea

    Thousands of supporters of the Supreme Court-dissolved Cambodia National Rescue Party (CNRP) on Saturday gathered in the South Korean city of Gwangju to hold a candlelight demonstration calling for the “liberation” of democracy in Cambodia. Yim Sinorn, a CNRP member in South Korea, said on

  • US Embassy: Chinese trade does not help like the West’s

    The US Embassy in Phnom Penh on Friday said relations between China and Cambodia did not create jobs or help industry when compared to the trade between the Kingdom and the US. “About 87 per cent of trade [with China] are Chinese imports, which do not

  • The Christian NGO empowering Cambodian families in Siem Reap

    With its basketball court, football pitch, tennis court and ninja warrior water sports area, you could be forgiven for thinking that the Siem Reap campus of International Christian Fellowship (ICF) Cambodia is a sports centre. But while these free, family-friendly activities are one of the