Original report from Phnom Penh
30 October 2007
Soaring fuel prices are putting increasing pressure on the poor, and lawmakers from the Cambodian People's and Sam Rainsy parties said Tuesday they were seeking solutions from the Ministry of Finance.
Lawmakers say they plan to send a letter of inquiry to Finance Minister Keat Chhon asking what specific measures will be taken to reduce fuel prices, which have tripled in Cambodia this year.
A liter of gasoline currently costs 4,300 riel, more than $1, and more than many of Cambodia's poor earn per day.
Sam Rainsy Party lawmaker Son Chhay told VOA Khmer he planned to write an official letter seeking solutions next week.
"We plan to ask [Keat Chhon] to reveal the government's measures to prevent the price from being high, and the reason for the hike," CPP lawmaker Cheam Yeap said.
The government can lower the taxes as a measure to alleviated the burden, Funcinpec lawmaker Monh Sophan said.
Fuel company representatives, meanwhile, say the price hike is due to Cambodia's dependence on fuel imports.
"It is causing a lot of difficulty for the general public, and also the people trying to make a living, especially for the people whose salaries are minimal, who are facing problems," economic analyst Kang Chandararoth told VOA Khmer.
Lawmakers say they plan to send a letter of inquiry to Finance Minister Keat Chhon asking what specific measures will be taken to reduce fuel prices, which have tripled in Cambodia this year.
A liter of gasoline currently costs 4,300 riel, more than $1, and more than many of Cambodia's poor earn per day.
Sam Rainsy Party lawmaker Son Chhay told VOA Khmer he planned to write an official letter seeking solutions next week.
"We plan to ask [Keat Chhon] to reveal the government's measures to prevent the price from being high, and the reason for the hike," CPP lawmaker Cheam Yeap said.
The government can lower the taxes as a measure to alleviated the burden, Funcinpec lawmaker Monh Sophan said.
Fuel company representatives, meanwhile, say the price hike is due to Cambodia's dependence on fuel imports.
"It is causing a lot of difficulty for the general public, and also the people trying to make a living, especially for the people whose salaries are minimal, who are facing problems," economic analyst Kang Chandararoth told VOA Khmer.
7 comments:
"The government can lower the taxes as a measure to alleviated the burden," -- Funcinpec lawmaker Monh Sophan said.
That is not a bad idea, but then how are we going pay our civil servant better? Please, keep on thinking, I am confident that you'll find a solution for it. Thanks for your help!
And what about the SRP, what idea do they have to offer to the country, aside from crying like a bunch of sissies?
There is very few good ideas to help aliviate the pain of high gas if the petroleum price per barrel in the global market is raising (today close in NY is near 89 down $3). First one must ask how much more Cambodian are paying above the market price due to lack of competitions and transparency? How about open up the market and let cheaper Vietnames and Thai gas come to Cambodia. The CPP let everything elses come into the country-why not cheap gas?
Lowing gas tax is not such a bad idea, short term. Tax revenue is not the only source for govt. to pay its workers. Besides, paying more for gas is like receiving less salaries- your net disposable income is still reduced.
Thank 4:30, I like your idea about increasing competitions to lower gas the price, but I don't agree with you on lowering tax on gas. I mean it does help to a certain extend because it allowed more people to buy gas and increase the revenue proportionally, but we will still end up with some deficit in the revenue to pay people. So, where can we make this up?
Lowering tax on imported oil is doable within the current political environemnt. More than that the Govt. has enjoyed double digit growths in last three years. Cutting tax (removing some type of tax)for the short run could is strongly recommended as countless types of tax are imposed to the users. Can you count all costs that usres need to pay on top of oil itself, Snr Kiet Chhon? I help you to start (i)Insurance
Sea Freight, (ii) Bank Fee, (iii)
Excise (Import) Tax, (iv) Evaporation Loss, (v)Road Freight, (vi)Supplier’s Overhead,(vii)
Gov't Charge (special charge - army), (viii) charges for road maintenance,(ix)VAT, (x) and others.
Example: in 2004 the price of Singapore FOB was $244/ton of diesel and It cost at the retail outlets in PNH $422/ton (it was 72% increase compared the FOB price) And now even more...
If you really care the people i'm sure we can do that. You are all never affected as the goverment pay the for you.
We don't care what user have to pay on top of the oil itself. There is nothing we can do about that. How the hell are we supposed to cut the transport cost, supplier overhead, ..., and all? Someone is going to have to pay for those things, not the government.
This article indicates that the increase in oil price has essence generated difficulties within Cambodia, among the poor.
The Funcipce and the SRP representatives are noticing the high price, and are planning to write a letter to the Minister of Finance addressing this issue.
Indeed, the crude oil price per barrel on the international market has risen to $96.00. This increase has a devastating effect on Cambodia in light of the fact that its economy is heavily dollar depend and it national currency is weak.
Cambodia is in badly need of currency control...so that it can set economic policies and alleviate the economic condition of its people.
That don't sound very practical, 11:13. We need immediate relief.
Anyhow, what are some of the think would you do to control the value of our currency, would you mind elaborate?
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