Fuel-price formula is sent to Hun Sen
ppp Tue, 24 November 2015
After months of negotiations between the government and fuel retailers, a proposed pricing mechanism aimed at ensuring that prices at the pump correspond to fluctuations in global petrol prices has been submitted to Prime Minister Hun Sen for his approval.
The Ministry of Commerce forwarded the flexible pricing mechanism to the prime minister after conferring with other concerned ministries and holding one-on-one consultations with fuel retailers, Commerce Ministry spokesman Ken Ratha said yesterday.
“The formula is already submitted, but we don’t know when the PM will call for the next meeting,” he said.
The pricing mechanism was formulated in response to Hun Sen’s criticism on September 22 that petrol retailers operating in Cambodia were always eager to increase prices to reflect rising global increases in crude oil, but were considerably slower in responding to falling world oil prices.
“Oil prices in global markets have tumbled, but the price [in Cambodia] is decreasing very slowly,” he said. “Yet when oil prices [in international markets] go up, the price in Phnom Penh goes up quickly.”