Original report from Phnom Penh
03 November 2008
At his small wood-and-thatch home in Mondolkiri province, Nuon Vanna stared at his Korean-made motorcycle, which had gone neglected for days. The 41-year-old laborer from Lao Ka village said extra-high fuel prices made riding the thing prohibitive.
Prices in Modolkiri have reached 7,000 riel perkilogram liter, about 2,000 riel higher than in Phnom Penh. Many here blame it on a fuel monopoly in the province’s capital, and even roadside fuel vendors say they cannot lower it further.
When the fuel hit the already high price of 5,500 riel per week, he could still take his motorcycle to the woods and collect resin, he said. “But when the gasoline price became higher, I went …only once.”
The high fuel costs cut his income in half, he said, to about 12,000 riel, or $3 per trip to the forest. Now he goes on foot.
One seller in Lao Ka village, Khun Samnang, said the high prices were hurting her business, as potential customers like Nuon Vanna opted not to drive. Selling at 5,500 riel per liter, she would sell 60 liters of fuel a day, for a total of 330,000 riel, about $82.50. By last week, at 7,000 riel per liter, she was selling half that amount, earning a total 210,000 riel, about $52.50.
“When gasoline costs are higher, we have more difficulty to sell it,” she said. “My clients complain that gasoline is very expensive, and on the other hand they say they have much difficultly making money.”
Khun Samnang said she’d been importing fuel for the past two years from the only dealer in the province, a man named Leng Hour, who, other villagers say, seems to adjust the fuel price arbitrarily.
Leng Hour could not be reached for comment, and members of his staff in the provincial capital declined comment.
But residents here question the wisdom of having only one fuel distributor.
“I wonder, why does only one petroleum distributor operate his business here, and why don’t other businessmen come to distribute petroleum here?” asked Em Sopheak, coordinator of the Community Legal Education Center in Mondolkiri town.
The fuel is imported from Vietnam and distributed throughout the province’s districts, but the prices seem arbitrary, Em Sopheak said.
Mondolkiri Governor Lay Sokha told VOA Khmer he had never received a bribe from Leng Hour.
No company has ever built a petroleum station in the town, he said, and if it were not for Leng Hour, there would be no fuel to buy.
Meanwhile, the local company Tela was hoping to begin operating in the province in the next few months, Lay Sokha said, hoping to sell prices consistent with those in Phnom Penh.
Meanwhile, Hang Chuon Naron, secretary-general of the Ministry of Finance, said Monday the fuel prices in Cambodia are coming down, thanks to international market rates and government subsidies. The government paid an estimated $250 million to petroleum distributors so far this year, he said.
“We organize meetings with those petroleum companies every two weeks and ask them to bring down the petroleum price,” he said.
Prices in Modolkiri have reached 7,000 riel per
When the fuel hit the already high price of 5,500 riel per week, he could still take his motorcycle to the woods and collect resin, he said. “But when the gasoline price became higher, I went …only once.”
The high fuel costs cut his income in half, he said, to about 12,000 riel, or $3 per trip to the forest. Now he goes on foot.
One seller in Lao Ka village, Khun Samnang, said the high prices were hurting her business, as potential customers like Nuon Vanna opted not to drive. Selling at 5,500 riel per liter, she would sell 60 liters of fuel a day, for a total of 330,000 riel, about $82.50. By last week, at 7,000 riel per liter, she was selling half that amount, earning a total 210,000 riel, about $52.50.
“When gasoline costs are higher, we have more difficulty to sell it,” she said. “My clients complain that gasoline is very expensive, and on the other hand they say they have much difficultly making money.”
Khun Samnang said she’d been importing fuel for the past two years from the only dealer in the province, a man named Leng Hour, who, other villagers say, seems to adjust the fuel price arbitrarily.
Leng Hour could not be reached for comment, and members of his staff in the provincial capital declined comment.
But residents here question the wisdom of having only one fuel distributor.
“I wonder, why does only one petroleum distributor operate his business here, and why don’t other businessmen come to distribute petroleum here?” asked Em Sopheak, coordinator of the Community Legal Education Center in Mondolkiri town.
The fuel is imported from Vietnam and distributed throughout the province’s districts, but the prices seem arbitrary, Em Sopheak said.
Mondolkiri Governor Lay Sokha told VOA Khmer he had never received a bribe from Leng Hour.
No company has ever built a petroleum station in the town, he said, and if it were not for Leng Hour, there would be no fuel to buy.
Meanwhile, the local company Tela was hoping to begin operating in the province in the next few months, Lay Sokha said, hoping to sell prices consistent with those in Phnom Penh.
Meanwhile, Hang Chuon Naron, secretary-general of the Ministry of Finance, said Monday the fuel prices in Cambodia are coming down, thanks to international market rates and government subsidies. The government paid an estimated $250 million to petroleum distributors so far this year, he said.
“We organize meetings with those petroleum companies every two weeks and ask them to bring down the petroleum price,” he said.
4 comments:
According to a gossip:
Gasoline supply in Mondul Kiri used to be smuggled from Viet. It was very low price in comparison to Phnom Penh.
A few years ago, a blood-related to Hun Xen who believed to be Hun To saw this golden business opportunity. He then used Hun Xen's power to put a "complete stop" to this illegal smuggling then he, himself illegally smuggles gasoline from the same source to distribute in the province exclusively. He raise the price up like no one's business.
The gasoline price in Phnom Penh during the highest period of last June-July was at 5,800 Riel/liter (about US$1.40) but it was 10,000Riel/liter (about US$2.50) in Mondul Kiri.
The present gasoline price in Phnom Penh is 4,100 Riel/liter (about US$1.00) while it is at 7,000 Riel/liter (US$1.40) in Mondul Kiri.
THIS IS ONE OF THE GOOD EXAMPLES OF THE GLORIOUS RECTANGULAR STRATEGY OF SAM DECH hun xen AND A HANDFUL OF HIS RELATIVES AND PUPPETS.
Pity those poor Khmer Tribal people in Mondul Kiri.
Vote for Obama and problem solves.
I heard the same thing when I was in Mondulkiri a year ago. Hun To also control electricity in the province. Anytime when you have this kind of business behavior, it is again free market economy. Everyone loses, only Hun To wins.
Comment one tells the true story. Mondulkiri's offices host many scams of that sort. The "new" hydro electric project, which was a donation from the government of Japan. Was meant to be providing power to the people of Mondulkiri at cost price somewhere between 600 - 800 riel. Even before it came to service, the price was hiked (probably by another CPP smart guy) to around 2000 Riel. It's really such a shame... Mondulkiri is an amazing place with lovely people. Why does is have to have the administration straight out of the CPP trash can ? where is they're shame ? Is this the land they are preparing for they're children???
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