In brief
Cambodia has injected more than US$600 million in subsidies to blunt global fuel price increases, with gasoline up 31% and diesel 46.7%. Measures include tax cuts, duty waivers, and lower electricity tariffs. The aid, announced by Prime Minister Hun Manet in Pursat province, will stay in place as long as international markets stay high.
On Nov. 5, 2026, Cambodian Prime Minister Hun Manet revealed that the government had spent over US$600 million in subsidies to counter soaring fuel and electricity costs triggered by Middle East conflicts. The announcement came during a live TV address in Pursat province, where the PM was handing out rice seeds and relief supplies to flood‑affected families.
Prime Minister Hun Manet said:
To date, we have subsidized more than 600 million dollars to curb rising fuel costs and stabilize electricity prices.He explained that the package covered direct electricity tariff cuts, targeted tax reductions, lower import duties on oil and gas, and reduced tariffs on electric vehicles and solar‑powered devices. The subsidies are designed to stay in place as long as global fuel markets remain elevated.
According to the Ministry of Commerce, the price of regular gasoline had risen 31 % to 5,050 riels (about US$1.24) per liter, while diesel spiked 46.7 % to 5,650 riels. Such hikes push up transportation and production costs, which can drive inflation and lower buying power, especially for food and agricultural goods.
Deputy Director Thong Mengdavid of the China‑ASEAN Studies Center at the Cambodia University of Technology and Science told Xinhua that “fuel price hikes elevate transportation and production costs, driving up inflation and eroding purchasing power, particularly for food and agricultural products.” He added that the subsidies serve as a fiscal cushion for long‑term economic resilience and help protecting low‑ and middle‑income households, informal workers, and small‑ and medium‑sized enterprises.
The move also underscored Cambodia’s vulnerability, as the country relies entirely on imported petroleum. With unexploited domestic offshore reserves, the subsidy package aims to keep the economy stable while waiting for global markets to calm down.
