The Cambodian government ear marked another $30 million per annum from the tax on gasoline to counteract the current price hike. The new retail price reduction of 160 riel (o.4 cent) per litre is scheduled to be introduced on July 1.
The move comes after the complains regarding to the sharp increase of the retail of gasoline in the Kingdom causing by the increase of prices on the global market.
The Prime Minister addressed the at the graduation ceremony in Phnom Penh by saying that the government already spent around $83 million in subsidies to the oil sector to help curb the price hikes that affect people’s daily live.
“Actually, by the plan, I set to announce the new policy on gasoline in our country on June 28. But I would like to inform now that over the past five months the government has silently subsided around $83 million to stabilize the retail price of gasoline in our country.”
“But, this measure is not enough, so we need to take additional measures through two types of arrangements. First – set the principle of tax imposition based on the global price, and second – reduce the special tax rate for gasoline from 35% to 15%, diesel from 15% to 5.5%, and oil from 15% to 10%.”
Some big companies like PTT, Tela, Sokimex, Total, Calex, and Papa Petroleum also agreed to reduce the retail price by 2 cents per litre. According to the Ministry of Commerce the current price for gasoline is $1.o2 per litre and $0.98 for diesel.
The PM has already signed the sub-decree on the new tax on gasoline so that it will be released and take effect on July 1.