Phnom Penh: In a decisive move to alleviate the financial strain caused by escalating global oil prices, the Cambodian government has announced a comprehensive reduction in taxes on gasoline and diesel. This strategic decision aims to stabilize domestic fuel costs and provide significant relief to consumers and businesses across the nation. The Ministry of Commerce and the Ministry of Economy have confirmed these measures, which underscore the government’s commitment to supporting the livelihoods of its citizens.
The new policy entails a complete elimination of the additional tax on both gasoline and diesel, effectively bringing it down to zero percent. Furthermore, the special tax levied on diesel has been reduced from 4% to 0%. In a crucial step to further ease the burden, the Value-Added Tax (VAT) on both fuel types will see a reduction from 10% to 4%, with the Royal Government undertaking the responsibility to cover the remaining 6% of the VAT.
These significant tax adjustments are projected to directly impact retail fuel prices, making them more affordable for the general public. Specifically, the government has committed to adjusting the retail price of fuel in Cambodia by reducing it by $6.5 cents per liter. An additional reduction of 1 cent per liter will also be implemented, resulting in a total cut of $7.5 cents per liter at the pump. This move is intended to directly facilitate the daily lives and operational costs for people nationwide.
The government’s proactive measures come in response to the continued volatility in international oil markets. Global crude oil prices have been observed to consistently rise, surpassing $90 per barrel, while international diesel prices have exceeded $100 per barrel, presenting a considerable challenge for import-dependent nations.
This new pricing structure and the corresponding tax reductions are scheduled to officially come into effect from March 20, 2026. From this date onwards, and until further notification, the retail price for regular gasoline (Gasoline 92) will be set at 5,400 Riel per liter, while diesel (Gasoil 10ppm) will be available at 6,700 Riel per liter.
