Hun Sen failed to mention that his cronies and relatives control the distribution of gasoline in Cambodia

Cambodian prime minister criticizes OPEC

Mon, 08 Oct 2007
DPA

Phnom Penh - Cambodian Prime Minister Hun Sen railed at the Organization of the Petroleum Exporting Countries (OPEC) Monday in response to recent attacks by political opponents at home over the country's high cost of gasoline. The price of gasoline hovers at just above a dollar a litre in an impoverished nation where hundreds of thousands of people earn less than a dollar a day.

"A few days ago there was a man who claimed he would decrease the price of gasoline (by 25 per cent) if he won the election. For me, if OPEC decreased the price of oil to 25 dollars a barrel, I will decrease the price of gasoline (by 50 per cent) or more," Hun Sen told a graduation ceremony in the capital.

"The best way is to ensure political stability in Cambodia first," he added.

The comments appeared to be a direct swipe at opposition leader Sam Rainsy, who held an informal meal catering to hundreds of the capital's thousands of motorbike taxi drivers at his Sam Rainsy Party headquarters last week and criticized the country's hefty petrol prices.

World oil prices are currently hovering at around the 80 dollar per barrel mark, and OPEC countries keep a tight reign on prices.

Campaigning for next year's general election is officially still months away, but political parties have increasingly moved into election mode, with inflation and the cost of living already emerging as key issues.

OPEC consists of Algeria, Indonesia, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, the United Arab Emirates, and Venezuela.

The group is estimated to produce about 40 per cent of the world's oil but to hold more than 77 per cent of the world's proved oil reserves. OPEC also claims nearly all of the world's excess oil production capacity.

Although Cambodia is expected to tap into its own potentially lucrative offshore oil reserves by the end of the decade, it currently remains totally dependent on imports, with inflation running at 4.7 per cent in 2006, according to the Ministry of Finance.

Gas Price Hike Squeezes Drivers, Consumers

Soth Virak, VOA Khmer
Original report from Phnom Penh
23 July 2007

"People earning about 4,000 riel per day used to be able to make a living, but not anymore" - Kek Galabru, Licadho founder

Rising gas prices are increasing the pressure on many Cambodians, especially those who earn a living driving people around.

Kong Loeut, who takes passengers on his old motorcycle, said he has a problem even filling his gas tank on all the money he earns from morning to noon.

The 3,000 riel he typically earns in that time won't even buy a liter of gas, he said.

"I am very worried, and afraid that the gas price will go up," he said. "In my mind, a liter of gas costing 3,000 riel is alright, but it is over 4,000 riel. I appeal to the government to decrease the gas price. It will then be easier for us motorcycle taxi drivers to be able to make a living."

Fuel at stations was selling Monday for 4,100 riel per liter for super, 4,000 riel per liter for regular and 3,200 riel per liter for diesel.

These prices are squeezing just about everyone, said Kek Galabru, founder of the rights group Licadho.

"Some people are civil servants, teachers, or police officers, and they make $20 [per month]," she said. "When they have free time, they take their old motorcycles and use them to transport people for money, to make ends meet. I think $20 can only go as long as three or four days and cannot last 30 days."

People earning about 4,000 riel per day used to be able to make a living, she said, but not anymore.

"They are very poor, and we cannot compare their lives to ours," she said. "But I think if we can sell the gasoline at the same price as Thailand or Vietnam, it is fair."