Cambodia’s government is forgoing around US$50 million in monthly revenue as part of efforts to cushion citizens from rising fuel prices driven by the ongoing conflict in the Middle East, Prime Minister Hun Manet has said.
Speaking at the groundbreaking ceremony for Section 2 of the Funan Techo Canal in Takeo province on 11 April, Hun Manet explained that the losses stem from tax reductions and other financial measures introduced to stabilise the cost of living.
He noted that state-owned utility provider Electricité du Cambodge has alone absorbed about US$35 million in losses to prevent electricity tariff increases during the global energy crisis, as oil prices and production costs continue to climb.
The Prime Minister pointed out that while some countries, including Singapore, have adjusted electricity prices upward, Cambodia has opted to maintain stable rates to protect households from further financial strain.
He added that if the situation persists, the government is prepared to consider additional support measures to ease the burden on the public, stressing that the current US$50 million monthly shortfall reflects a deliberate policy to keep money in citizens’ hands.
Hun Manet also acknowledged that diesel prices remain elevated and volatile, warning that the ongoing war continues to create uncertainty in global energy markets.
He emphasised that the Royal Government remains committed to supporting the population not only during stable periods but also through crises, using targeted interventions to mitigate the impact of external shocks on the domestic economy.
