Cambodia To Spend Over US$300 Million To Reduce Petrol, Electricity Prices
PHNOM PENH, Oct 20 (Bernama) — The Cambodian government will spend more than US$300 million per year, to keep the petrol and electricity prices down, national media reported Monday.
“We will continue to support prices until oil drops below 900 U. S. dollars a ton,” the Vietnam news agency (VNA) quoted Keat Chhon, Cambodian Minister of Economy and Finance, as saying in the Phnom Penh Post.
Imported oil costs US$960 a tonne, down from US$1,200 a tonne in early 2008, the Post said.
The government does not provide cash subsidies for energy, but has said it will not raise taxes on imported oil, which remains at US$309 a tonne, despite fluctuations in world oil prices.
The move, it says, costs hundreds of millions of dollars in lost tax revenue, according to the Post.
Meanwhile, Victor Zona, deputy general manager of the Industry Ministry, said Cambodia is likely to cut electricity costs by 10 percent in Phnom Penh and about 50 percent in provinces after 2012.
He said the reduction would hinge on major hydro-electric projects coming online.