As Cambodia heads into Khmer New Year next week, its biggest holiday, many workers in Phnom Penh say rising economic strain and a global energy crunch are forcing them to cut back on celebrations or skip trips to their home provinces.
“We don’t know where to visit because transportation is expensive,” said Sar Nuch, a 55-year-old fruit vendor in Phnom Penh. Her family had planned to travel to Mondulkiri province for the holiday but are now reconsidering, citing higher fuel costs and a need to conserve spending.
The holiday comes amid a spike in fuel prices in Cambodia and globally after a broader Middle East conflict erupted more than a month ago, when the United States and Israel launched strikes on Iran, triggering retaliatory attacks and disrupting traffic through the Strait of Hormuz, a key shipping route for about a fifth of the world’s oil. A two-week ceasefire was agreed on Wednesday, though some conditions have yet to be met.
Gasoline prices in Cambodia are currently set at 5,200 riel ($1.30) per liter, down 300 riel from last week, according to the Ministry of Commerce. Diesel prices fell from 8,200 riel to 6,900 riel ($1.72) per liter nationwide as of Friday.
A garment worker in Phnom Penh originally from Kampong Thom province, Ean Samley, voiced similar concerns about the cost of traveling home.
“There are many impacts because everything is expensive and we also have to buy some goods. Yes, I am worried that I may not have enough money to visit my hometown,” she said.
National Trade Union Coalition President Far Saly said garment workers have complained about inflation, particularly rising food and fuel prices and the cost of traveling during Khmer New Year.
“Indeed, it is difficult for workers to travel by vehicle or taxi due to increasing prices, and buying goods has become more burdensome,” he said.
He urged workers to use the government’s public bus service, which is free of charge during the holiday.
Each year during Khmer New Year and Pchum Ben, the government provides hundreds of free bus rides from Phnom Penh to provinces across the country. This year, around 600 buses are scheduled to operate over six days beginning Sunday.
But the broader impact of rising fuel costs is still being felt.
Huon Vandy, a construction worker in Phnom Penh, said he plans to visit his hometown in Kampong Chhnang province next week despite higher living costs this year.
“We workers are affected by everything, including increasing fuel and meal prices, while our salary does not increase,” he said. He earns about 50,000 riel (around $12.50) per day.
“I feel unhappy this year because everything is expensive. We have a low income but many expenses,” Vandy said.
Government spokesperson Pen Bona said authorities have been closely monitoring fuel prices and have reduced costs by about $0.07 per liter while cutting import taxes on oil to zero.
“Because of the government’s intervention, our macroeconomy remains stable even in a tense situation, and we do not panic about inflation, which remains at a low level,” he said.
His comments come as the conflict in the Middle East, along with U.S. President Donald Trump’s tariff policies and slowing growth in China, weighs on Southeast Asia’s economic outlook this year, according to a recent World Bank report.
The World Bank projects Cambodia’s economic growth will slow to 3.9% this year from 4.8% previously.
