Over iced coffees at Phnom Penh teahouses lately, the main talk is about the cost of living. With wars flaring up in the Middle East, we are feeling the pinch right here at fuel pumps and on power bills. According to local media, the government has already pumped hundreds of millions of dollars into keeping fuel prices down and cutting import taxes, hoping to take the edge off for struggling households.
Speaking at a hospital inauguration on September 16, Prime Minister Hun Manet pointed out that fuel subsidies and tax cuts alone have cost the state over $360 million. On top of that, Electricite du Cambodia has absorbed $50 million to keep power tariffs from rising. Tuk-tuk drivers on the streets and over a million affected families are now included in the relief rollout and will soon receive support.
While people around town still worry about their wallets, Hun Manet made it clear that the spending is worth it. He stated that he would rather put nearly $100 million toward taking care of ordinary citizens and the poor than spend it on rockets for war. He added that the government is also providing direct financial backing for families of fallen soldiers, injured veterans, and displaced people evacuated from the Thai border.
