Cambodia to shut 2,000 petrol stations amid energy crisis
Cambodia is bracing for fuel supply disruptions, with plans to temporarily close around 2,000 of its 6,300 petrol stations amid an energy shortage linked to ongoing Middle Eastern conflicts, commerce minister Cham Nimol announced on March 13.
Cham Nimol said the ministry is developing a formula to adjust retail fuel prices, taking into account the current pressures on petrol station operators. Some owners may choose to shut down temporarily and wait to sell fuel at a higher price if costs rise quickly.
The ministry has specialists monitoring the situation. If fuel is found to be hoarded rather than sold, penalties will be imposed and business licences could be revoked. Should stocks run dry, the government said it will step in to work with private companies to import additional supply.
Under a pricing formula agreed upon by the committee, the ministry, and petroleum companies operating in Cambodia, regular gasoline was priced at 5,200 riels per litre (approximately 42 baht) from March 11 to 13, while diesel stood at 6,050 riels per litre (around 49 baht).
On July last year, Cambodia halted refined oil imports from Thailand following a border dispute ordered by Cambodian prime minister Hun Manet, effective from midnight on June 22. The move is unlikely to significantly affect Thai oil companies, however, as they can redirect their roughly 6 million litres of daily Cambodian exports to other Asian markets such as Singapore, according to the Department of Energy Business.
Thailand’s six refineries produce approximately 160 million litres of refined oil per day, with 130 to 135 million litres consumed domestically. Last year, Thailand exported 2.29 billion litres to Cambodia, making up 21.1% of total fuel exports. PTT Oil and Retail Business previously said the ban would not significantly disrupt its 186 petrol stations in Cambodia, with PTT Cambodia Ltd continuing to sell remaining stocks until depleted. If redirection proves difficult, Thai firms may instead scale back production and focus on facility maintenance.
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