PHNOM PENH, June 23 (Xinhua) -- Retail fuel prices in Cambodia have fallen by more than 10 percent so far this month, according to the Ministry of Commerce on Tuesday.
The Ministry of Commerce announced that regular gasoline dropped 10.3 percent to 4,350 riels (about 1.08 U.S. dollars) per liter on Tuesday, down from 4,850 riels at the start of June.
Diesel is now priced at 4,250 riels per liter, down 12.3 percent from 4,850 riels, according to the announcement.
Fuel prices in Cambodia remained higher than before the outbreak of the Middle East conflict in late February, when a liter of gasoline or diesel cost 3,850 riels only.
Thong Mengdavid, deputy director at the China-ASEAN Studies Center of the Cambodia University of Technology and Science, said the gradual decline signals a positive trend for the local economy as the Middle East geopolitical tension eases.
"As a heavy net importer of oil, this development would immediately alleviate the inflationary burden on local farmers and the logistics and transportation sectors," he told Xinhua.
"Moving forward, the government's policy of subsidizing retail fuel through customs duty waivers and value-added tax (VAT) reductions remains a crucial fiscal cushion for long-term economic resilience and growth," Mengdavid said.
The Southeast Asian country relies entirely on imported petroleum and diesel because its offshore oil reserves remain untapped. ■
