The price of gasoline hit an all-time high in Phnom Penh on Wednesday of 3,900 riel, or 0.95 U. S. dollar per liter.

"I have never seen this kind of price," Sok Kong, owner of petroleum giant Sokimex was quoted by The Cambodia Daily as saying on Tuesday, who predicted that pump prices will soon reach one dollar a liter.

Finance Minister Keat Chhon said the government cannot lower the price. "Our action is to not take any action," he said, before urging citizens to conserve fuel. "We are poor, economizing is important." The government's policy continues to be to charge a flat tax of 309 per ton of petroleum, rather than charging a percentage tax, he said.

Kang Chandararot, director of the Cambodian Institute of Development Study, said the rise in fuel costs will trigger higher levels of inflation, which was 5.93 percent in March, down from 6. 2 percent in February. "The price of oil is a global issue, but it impacts the domestic economy," he said.

Cambodia is heavily reliant on external sources of energy supply.

Source: Xinhua