Gasoline price to continue to rise

31 July 2009
By U. Ch.Cambodge Soir Hebdo
Translated from French by Tola Ek for KI-Media
Click here to read the article in French

According to Hang Chuon Naron, the general secretary of the ministry of Economy and Finance, Cambodia must focus on energy saving without relying on oil revenue.

The price of oil should continue to rise slightly in the upcoming months, Hang Chuon Naron told CTN on Friday 31 July.

When asked on the reason why the retail price of gasoline in Cambodia remains high while the price of oil dropped on the international market, Hang Chuon Naron indicated that the shipping delay and the gasoline stock quantity [in Cambodia] made it impossible for a faster change in gasoline price.

“Furthermore, the exchange rate and the fluctuation of the riel with respect to the US dollar also explain that the price of gasoline does not drop quickly,” he said.

In the future, the price of gasoline should increase slightly still “due to the growth of the US economy,” Hang Chun Naron added.

According to him also, it is unlikely that oil production in Cambodia will change the situation: “The first barrels of oil will not be produced until 2015 and these oil fields are not that important. They should bring in about $100 million per year, i.e. 14 times less than what the tourist industry brings in.”

Hang Chuon Naron added: “We must be realistic. People must save energy and they should use transportation means that use less gasoline.”

When asked about the reason why the retail price of gasoline is cheaper in neighboring countries, Hang Chuon Naron indicated that Thailand and Vietnam had subsidized this sector for a long time: “However, this policy reaches its limits. In Cambodia, the government choice is to help the population with public policy for construction, education and help provided to needy people.”