Cambodia PM wants flexible fuel prices

Cambodia Prime Minister Hun Sen announced his plans to meet with retailers to further discuss the issue of setting a flexible price mechanism in the country, reported the Phnom Penh Post.

Hun Sen is rooting for a price mechanism that would ensure that local fuel prices would be reflective of changes in the global market. He criticized fuel retailers over their inclination to follow global price hike but unresponsive when it comes to dropping prices.

A series of meetings has already been held between the Ministry of Commerce and retailers since September to set a uniform price mechanism, but so far the only agreement that has been reached was to drop prices by 100 riel (0.02 US dollars) during the celebration of Pchum Ben holiday.

Some oil companies like PTT decided to extend the 100-riel price decrease beyond the national holiday, but according to Bin Many Mialia, PTT’s marketing manager, a consensus between government and companies should be reached.

“If the government wants to decide the price [by itself] it will be against the free market [policy],” Mialia said.

Setting a uniform price mechanism proves to be difficult as each company has its respective cost structures and price strategy, which cannot be shared with competitors, according to a separate Phnom Penh Post report.

“I will meet all of them [oil retailers] directly and will ask the Ministry of Commerce to formulate a [price] calculation for me,” the Prime Minister further said.

Prices at gas stations in Phnom Penh yesterday ranged from 3,700 riel (0.91 US dollars) for regular gasoline to 3,950 riel (0.97 US dollars) for premium.