War-driven disruptions reshape Cambodia’s fuel supply strategy

Cambodia is ramping up fuel imports from Singapore and Malaysia to compensate for reduced supplies from Vietnam and China, disruptions linked to the ongoing US and Israel war against Iran, the South China Morning Post reported, citing Energy Minister Keo Rottanak.

The supply constraints recently forced widespread closures across the country’s fuel retail network. Last week, nearly one-third of Cambodia’s 6,300 petrol stations were shut due to price uncertainty. That situation has since improved, with the share of closed stations dropping to 5.77%, according to the minister.

Cambodia’s fuel import structure highlights its dependence on regional suppliers. In 2024, Vietnam and Thailand accounted for more than 60% of refined fuel imports, while Singapore and Malaysia supplied nearly one-third, and China contributed about 7%.

Rottanak said Cambodia continues to import limited volumes from China but has been able to mitigate risks through partnerships with major energy companies Total and Chevron. Shipments of gasoline and diesel from Singapore and Malaysia to Cambodia increased by 25% during the first 18 days of March compared to the same period last year.

In parallel, Cambodia is negotiating with Australia-based Woodside Energy to secure liquefied natural gas supplies for a 900-megawatt power plant scheduled to begin operations next year.

Despite current disruptions, the country has some protection against global energy shocks due to its growing use of renewable energy and ongoing electrification efforts, which reduce reliance on oil markets.

Rottanak emphasised that the crisis highlights the importance of deeper regional cooperation, calling for accelerated integration of ASEAN power grids. He noted that a unified regional energy network would significantly strengthen resilience to future supply disruptions.

By Tamilla Hasanova