Tuesday, 23 December 2008
Written by Chun Sophal and Hor Hab
The Phnom Penh Post
"I have had enough with the high petrol prices, and I will meet with all companies."Prime Minister Hun Sen threatens to summon petroleum company heads, saying falling oil prices are not being reflected at the pump
OIL companies are facing renewed pressure to cut pump prices in line with falling international crude following another scathing speech by Prime Minister Hun Sen on Monday.
The premier lashed out at oil importers and threatened to summon company heads unless he saw immediate action being taken to bring prices down at the pump.
"I have had enough with the high petrol prices, and I will meet with all companies at once," said Hun Sen.
He accused the companies of price-gouging in a speech that at times sought to portray the prime minister as the sole impetus behind falling prices.
"I wonder about the oil price. When I tell petroleum companies to decrease the price, they decrease it, but when I don't, they don't decrease it," Hun Sen said.
International crude oil has fallen drastically from a record US$147 in July to about $43 on weaker demand and a slow global economy.
Local pump prices have fallen as well, albeit at a slower rate, from a record 5,750 riels in July to 2,950 currently at Sokimex and Tela, and 3,050 at Total and Caltex.
"We understand that [the companies] have stocks of imported oil, but companies should not use this as an excuse to keep the price high," Hun Sen said.
High petrol prices helped drive the Kingdom's inflation rate to more than 30 percent this year. Since July, the prime minister has twice called on companies to cut prices in an effort to curb inflation and reduce countrywide transport fees.
The Ministry of Economy and Finance has met with the companies six times since July to press for price cuts, but the declines have been small.
The Opec factor
Heu Heng, deputy director general of Sokimex, welcomed the prospect of a face-to-face meeting with the prime minister.
"We respect the government's stance and we will cut the price if the international market price stablises," Heu Heng said.
But he warned that market interventions by Opec could boost prices, pointing to the oil cartel's decision to cut output by 4.2 million barrels per day in an effort to meet its target price of US$65 to $75 per barrel.
"Sokimex is the leading imported oil company that sells oil at the lowest price [2,950 riels per litre], and prices will decrease more in the future," Heu Heng added.
Opposition lawmaker Son Chhay said Monday he supports Hun Sen's efforts and hoped oil companies would heed the government's calls.
"The government should not allow imported oil companies to sell based on their self-interest. They have a history of increasing the price abruptly when it is high, while failing to cut it when it declines," Son Chhay said.
Kang Chandararot, director of the Cambodia Institute of Development Study, said he is not sure what pump prices should be but said they should correlate with the international oil price.
"The government must try to curb the local price to match with world crude oil price," he said. "We need more documents from the oil companies."
8 comments:
KI-Media should spend less time tearing fellow Khmers down and more time on the African niggers who are running wild on Monivong Blvd.
These black apes, along with the white orangutans, are here to prey on Khmer women while trafficking drugs and running internet scams.
If you have people in Cambodia collecting news like you claimed, how can you miss all the niggers who are degrading our women and culture?
It just goes to show that you people are only interested in licking the white man's balls and don't give a flying fuck about our nation being overrun by wild monkeys.
(Yeah, I'm the "angry" KI-Media reader that you posted about)
8:01pm,
You can write but you can think. You are mad because you think KI readers kowtow white people, but it would be ok if KI readers kowtow you?
What kind of person are you? I think that explains a lot about who you are...
8:01PM you M o t her fu c ker Vietnamese better to go back to your country and take ah Kwack's daugther with you too!
With ah Sen intervention the barrel is now only 33USD.
Hanoi PdD, so efficient.
Wow!!!
well, mr. prime minister is correct about "price-gouging" at the pumps in cambodia. look, the price of oil had gone down trememdously, even in the USA, it is now almost $1.50 per gallon of gasoline at the pump as i type. gasoline stations owners in cambodia should reflect this as well, and stop taken advantage of the consumers in cambodia! thank you.
well, have you ever heard of the cowboy mentality? well, mr. hun sen is just that; he's a good leader, just his style is different. i don't have any probllem with that if it will get the job done!
Hun Sen is the greatest Khmer leader of all times!
Looks like Hun San has changed a lot since Hok Lundy's death.
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