by Hin Pisei

PHNOM PENH (The Phnom Penh Post/ANN) - The Ministry of Commerce warned increase tensions between the US and Iran, one of the world’s largest oil producers, could cause prices to fluctuate.

Increase tensions between the US and Iran, one of the world’s largest oil producers, could cause prices to fluctuate, the Ministry of Commerce warned on Thursday.

However, the ministry said fuel prices in the Kingdom will stick to those announced every 15 days, which are based on calculations made on the international price of oil to ensure the Kingdom’s economic stability.

The retail price of petrol in the Kingdom is to not exceed 3,750 riel per litre at fuel stations, with diesel no more than 3,650 riel, the Ministry of Commerce announced on January 2. New prices will be announced on January 15.

A ministry letter notifying all petrol retailers in Cambodia of the situation on Thursday said current international market conditions meant the price of fuel could become unpredictable.

President of the Cambodia Freight Forwarders Association (Camffa) Sin Chanthy said the warning was important for the transport sector as a rise in fuel prices meant increased costs.

When the price of fuel is high, he said, it not only results in an increase in the price of goods, but also reduced activity in the transport sector.

“This notice will not only help the transport sector in Cambodia, but also the public,” Chanthy said.

He said state intervention was playing an important role in boosting Cambodia’s economic growth, with lower transport costs enhancing the Kingdom’s competitiveness.

Cambodia Rice Federation president Song Saran said that while the sector relied mostly on electricity, it could still be affected by a rise in fuel prices.