Retail price of gasoline drops

May Kunmakara / Khmer Times No Comments Share:
An employee fills up the tank of a motorcycle at a gas station in Phnom Penh. KT/Chor Sokunthea

Starting yesterday, the price of regular gasoline in the Kingdom is 3,950 riel ($0.97) per litre, amounting to a reduction of 200 riel per litre following a series of tax cuts announced last month by Prime Minister Hun Sen as well as price reductions implemented by local gas stations.

For in depth analysis of Cambodian Business, visit Capital Cambodia

The price of diesel also went down by the same amount, and now sells for 3,750 riel ($0.93) per litre at all gas stations in the country, according to an announcement yesterday by the Ministry of Commerce.

“In order to facilitate the daily lives of our people and with the help of local gas stations, Prime Minister Hun Sen decided to decrease the retail price of gasoline by 4 cents per litre,” the ministry’s announcement said.

Mr Hun Sen said last month that the government will reduce the retail price of gasoline by following a two-pronged strategy. First, he announced that the tax rate for regular gasoline will be reduced from 35 to 15 percent, diesel from 15 to 5.5 percent, and kerosene from 15 to 10 percent, which will cost the government $30 million in tax revenue. The tax cuts came into effect yesterday.

He also said the government has held talks with the nation’s biggest gas companies, including PTT, Tela, Sokimex, Total, Caltex and Papa Petroleum, who agreed to reduce prices at their gas stations by $0.2 a litre.

“The result of the tax cuts plus gas companies’ agreement to reduce their prices is that, starting July 1, gasoline will be 4 cents cheaper, at gas stations across the country,” he said.

“This is how the government is helping its people. We must also thank gas companies for their contribution.”

The premier added that the government was already subsidising the price of gasoline by investing $83 million to stabilise retail prices.

Seang Thay, spokesman for the Ministry of Commerce, told Khmer Times that the ministry already sent out letters to notify all gasoline stations of their obligation to sell gasoline at the prices set by the government, adding that ministry officials will visit gas stations to monitor their compliance.

As of June 29, a barrel of regular oil sold for $82 in the international market, while diesel fetched $88.04 per barrel.

Share and Like this post

Related Posts

Previous Article

Trump expects another tax overhaul

Next Article

Angkor Wat ticket revenue up 18 pct