Cambodians Hurting as Gas Prices Climb and Threaten the Larger Economy
Filling up at the gas station probably counts as few people’s favorite
activity, but over the past year, it’s become almost a source of dread
for many Cambodians as prices at the pump have jumped at a rate that far
outstrips inflation.
According to data from the National Institute of Statistics, while the
inflation rate in Cambodia was 5.8 percent from January 2011 to January
2012, gas prices jumped a whopping 10.8 percent. Consumers have been
shocked recently as the increases have become more regular, and many
have come to simply expect paying more every time they fill up.
The blame can be partly placed on rising world oil prices. Earlier this
month, Brent crude topped US$128 per barrel, although prices have eased
somewhat since then. Still, a sharp spike in the first two months of
this year has kept prices at the pump high. Tensions in the Middle East
and concerns about sanctions against Iran over its nuclear program have
made investors nervous. Analysts do not think prices will come down
below US$100 a barrel very soon.
Source: Economics Today, Issue 112, March 19-25
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