Rick Valenzuela A mortorcyclist fills up at a Phnom Penh streetside fuel vendor. Prices fell after government pressure, but not by much. The Phnom Penh Post
Written by Kay Kimsong
Tuesday, 19 August 2008
Minister of Finance Keat Chhon urges fuel companies to lower pump prices but high international oil costs might force consumers to wait
Petrol and diesel prices at most Phnom Penh stations dropped 400 to 500 riels (US$0.10) per litre at the weekend following a meeting last week between the government and oil companies where finance officials pressed for a cut in pump prices.
"We asked all major companies to consider reducing petrol and diesel prices," said Chuo Vichet, chief of Cabinet for Finance Minister Keat Chhon.
He said Keat Chhon met petroleum majors Sokimex, PTT, Kampuchea Tela, Total Cambodge, Caltex and Savimex on Thursday to press for a price cut.
"We did not order [oil companies] to cut petrol prices, but being partners, we hope companies reduce prices step by step," Chuo Vichet said Sunday.
He said high international crude costs were the most important factor behind the high petrol prices.
"We understand that this is a free-market economy, but the government is hoping petroleum distributors drop gasoline to a reasonable level for consumers," Chuo Vichet said.
Following the meeting, petrol and diesel at most Phnom Penh stations dropped from 5,600 riels ($1.40) per litre to 5,200 riels for premium fuel.
Medium-grade petrol prices dropped from 5,500 riels per litre to 5,300 riels. Diesel prices remained the same as premium.
Crude oil closed at $115 per barrel on Monday.
Cambodia imports about 100,000 tonnes of oil per month, according to Finance Ministry figures.
All of Cambodia's petroleum is imported with pricing based on the Singapore Tapis system. Cambodia's largest petroleum company, Sokimex, said that local prices would fluctuate with the international market.
"We are willing to reduce the price in line with international crude prices," said Heu Heng, deputy director of charge marketing of Sokimex.
Sokimex reduced petrol prices to 5,250 riels per litre from 5,650 riels last week. Diesel went from 5,600 riels to 5,400 riels, he said.
Seng Chungly, network manager for Total Cambodge, said the company was cutting prices by 350 riels after meeting with Keat Chhon.
Written by Kay Kimsong
Tuesday, 19 August 2008
Minister of Finance Keat Chhon urges fuel companies to lower pump prices but high international oil costs might force consumers to wait
Petrol and diesel prices at most Phnom Penh stations dropped 400 to 500 riels (US$0.10) per litre at the weekend following a meeting last week between the government and oil companies where finance officials pressed for a cut in pump prices.
"We asked all major companies to consider reducing petrol and diesel prices," said Chuo Vichet, chief of Cabinet for Finance Minister Keat Chhon.
He said Keat Chhon met petroleum majors Sokimex, PTT, Kampuchea Tela, Total Cambodge, Caltex and Savimex on Thursday to press for a price cut.
"We did not order [oil companies] to cut petrol prices, but being partners, we hope companies reduce prices step by step," Chuo Vichet said Sunday.
He said high international crude costs were the most important factor behind the high petrol prices.
"We understand that this is a free-market economy, but the government is hoping petroleum distributors drop gasoline to a reasonable level for consumers," Chuo Vichet said.
Following the meeting, petrol and diesel at most Phnom Penh stations dropped from 5,600 riels ($1.40) per litre to 5,200 riels for premium fuel.
Medium-grade petrol prices dropped from 5,500 riels per litre to 5,300 riels. Diesel prices remained the same as premium.
Crude oil closed at $115 per barrel on Monday.
Cambodia imports about 100,000 tonnes of oil per month, according to Finance Ministry figures.
All of Cambodia's petroleum is imported with pricing based on the Singapore Tapis system. Cambodia's largest petroleum company, Sokimex, said that local prices would fluctuate with the international market.
"We are willing to reduce the price in line with international crude prices," said Heu Heng, deputy director of charge marketing of Sokimex.
Sokimex reduced petrol prices to 5,250 riels per litre from 5,650 riels last week. Diesel went from 5,600 riels to 5,400 riels, he said.
Seng Chungly, network manager for Total Cambodge, said the company was cutting prices by 350 riels after meeting with Keat Chhon.
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