Heightened tensions between the US and Iraq have increased the price of cooking gas at local Phnom Penh markets from $7 to $9 for 30-kg bottles, Sokimex President Sok Kong said on Tuesday.
“When the US government threatens to wage war against Iraq, the world price of gas is pushed up and makes it difficult for us to buy gas from Thailand,” Sok Kong said.
Sok Kong said Sokimex is searching for a strategy in case tension between the two nations continues. He predicted that gasoline and oil prices will continue to rise in Cambodia.
Eighty to 90 percent of Phnom Penh residents prefer cooking gas to wood or coal and consume 1,600 tons of fuel per month. Sokimex alone sells 400 tons a month, controlling 25 percent of the local market, Sok Kong said.
Many owners of Phnom Penh’s 60 cooking gas shops report selling between five and 10 bottles a day, although recent sales are showing signs of decline.
A seller at the Bayon Shop near Phsar Thmei noted that Total Gas is raising its prices as a result of reduced imports from Thailand. Sales consequently have dropped from 30 bottles to 20 bottles a day.
Sokimex also faces problems importing gas from suppliers in Thailand, where a large amount of gas is imported from Iraq, Sok Kong said.
Sar Theara, owner of the Teannchit Gas Shop, also located near Phsar Thmei, said she cannot understand why prices are so high.
“I have sold gas for seven years and have never seen the cooking gas rate reach $10,” she said.
She expects the price of gas to decline during the coming months as water levels fall, facilitating trade along the Thai border.
Meanwhile, Sok Kong and other local petroleum officials expressed concern on Tuesday over the continued smuggling of gas across the Thai border.
