Cambodia Fuel Prices: Middle East War Impacts Teenagers & Economy

Daniel Gech paused at a Sokimex petrol station in Phnom Penh, studying the rising prices. The 16-year-old’s daily commute to school and evening job is being increasingly strained by the escalating cost of fuel, a consequence of the conflict in the Middle East. He now spends an additional US$2 each day, totaling US$14 weekly, to fill his moped’s tank – a substantial increase given Cambodia’s average daily wage of just over US$10.

“The prices started to go up immediately after the war started,” Gech said on Sunday even as paying 5,400 Cambodian riel (US$1.34) for a litre of fuel, a rise of 2,000 riel compared to pre-war levels. “It’s too much already and it’s getting worse each day.”

Southeast Asia is facing economic vulnerability due to potential disruptions to the Strait of Hormuz, a critical waterway for global energy supplies. Iran has reportedly weaponized energy supply as a response to military actions taken by the United States and Israel. Threats have been made by combatants to target energy facilities throughout the Gulf region as the conflict enters its fourth week.

The price of Brent crude oil has fluctuated between US$100 and US$110 per barrel in recent weeks, representing a 20 percent increase since February 28, when Israeli and American forces began bombing Iran.

Sokimex Investment Group, operating the petrol station where Gech filled his tank, is a significant player in Cambodia’s energy sector. The company’s corporate office is located in Phnom Penh and employs between 51 and 200 people, according to ZoomInfo.

The Angkor Hospital for Children, in its 2016 annual report, highlighted the importance of sustainable healthcare models in Cambodia, a nation increasingly susceptible to external economic pressures.