Import of petrol, diesel up 23 percent to $1 billion
Import of petrol, diesel up 23 percent to $1 billion
Cambodia’s imports of petroleum and diesel were up 23 percent to $1.06 billion in the first five months this year, according to a report from the General Department of Customs and Excise (GDCE).
Between January to May, the Kingdom imported 20 percent more diesel worth $641 million; up from $537 million for the same period last year. Petrol import was up 30 percent to $432 million from $324 million for the same period.
The increase in fuel imports is due to an improvement in the domestic production chain, said Lim Heng, Vice President, Cambodian Chamber of Commerce (CCC).
“Despite external factors affecting global demand, we see the domestic manufacturing sector remain strong; encouraging more import of fuel,” Heng said on Wednesday.
Cambodia, which is reliant on imports for its fuel supply, gets diesel and petroleum imports from Singapore, Thailand, and Vietnam, according to the Ministry of Commerce. In future it is possible Cambodia could have an independent supply of fuel as the government explores potential oil resources under the Khmer seabed and the Tonle Sap.
A few years ago, attempts were made to have a domestic oil production base. Singapore-based company KrisEnergy set up an oil production unit in Cambodia on December 28, 2020. But within six months of operation, unfortunately the company had to file for bankruptcy in June 2021.
Cambodian retailers import fuel from players including Tela Sokimex, Papa Savimex, Lim Long, and others. Foreign companies that import fuel to Cambodia include Total, Caltex, and PTT.
The Ministry of Mines and Energy forecasts that the demand for oil products in Cambodia will rise to 4.8 million tons in 2030, up from 2.8 million tons in 2020. Organization of the Petroleum Exporting Countries (OPEC), expects to see higher demand from Asia, and raised its world oil demand forecasts for the medium and long term in its annual outlook. OPEC expects world oil demand to reach 116 million bpd by 2045, around 6 million bpd higher than the previous year’s report – with growth led by China, India, other Asian nations, Africa, and the Middle East.
At gas stations on Wednesday, regular petrol and diesel cost 4,100 riel (1.01 dollars) and 4,000 riel per litre respectively.
