Kiripost Cambodia has introduced new fuel prices in an effort to shield citizens from soaring global oil costs. From 29 March, regular gasoline is capped at $1.25 a litre and diesel at $1.80, following a government decision to slash additional taxes from 10 to four percent, with the state absorbing the rest. The move comes as rising fuel expenses weigh heavily on everyday workers, particularly tuk-tuk drivers. Many say their income no longer covers costs. “I spend about $75 a month on fuel, but sometimes I don’t even make a profit,” one driver in Phnom Penh told local media. Others in Siem Reap echoed the same frustration, noting that fares have not increased in line with fuel prices. To ease the burden, the government has introduced a base price reduction of 6.5 cents per litre, with an extra cut when international oil prices exceed certain thresholds. But for many, the relief is modest compared to the sharp rise in living costs. At the same time, Cambodia is pushing a broader energy transition. From 1 April, import duties on renewable energy products will be slashed, with electric vehicles, batteries, charging stations and even household appliances such as electric stoves exempted from tariffs. Hybrid and plug-in hybrid cars will also benefit from reduced rates, signalling a comprehensive push to encourage cleaner alternatives. The General Department of Customs and Excise confirmed that duties on electric vehicle motors, solar systems and lithium batteries will drop to zero, while export taxes on bauxite will be cut from 25 to 10 percent. Officials say the measures are designed to reduce reliance on fossil fuels and build the infrastructure needed for wider adoption of renewable energy. For now, citizens face the immediate reality of higher fuel costs, even as the government looks to the long term. The dual approach—short-term subsidies and long-term incentives—reflects the challenge of balancing economic pressures with the need for sustainable energy. -2026-03-30
