Cambodia’s energy sector is facing acute pressure as Vietnam and China impose temporary fuel export restrictions until at least the end of March. These measures, combined with disruptions linked to the U.S.-Israeli war on Iran, are affecting global and regional fuel availability. Cambodia, which lacks domestic oil refining capacity and maintains less than a month’s supply of key petroleum products under normal conditions, has historically relied on its neighbors for energy imports.
In 2024, Thailand and Vietnam together accounted for more than 60% of Cambodia’s petroleum imports, while Singapore and Malaysia supplied roughly one-third, and China contributed around 7%. Thailand’s export ban since mid-2025 has further intensified supply vulnerabilities.
Key Developments
Cambodia is increasingly turning to Singapore and Malaysia to compensate for shortfalls. According to Energy Minister Keo Rottanak, imports from these countries are rising, with gasoline and diesel shipments for the first 18 days of March 25% higher than the same period last year, though still 40% lower than the final half of February.
Approximately a third of Cambodia’s 6,300 petrol stations have temporarily closed, amid investigations into potential hoarding and fears of further price increases. Despite these disruptions, Rottanak indicated that current fuel stockpiles remain comparable to historical levels and that partnerships with global suppliers such as Total and Chevron are helping mitigate immediate risks.
Rottanak emphasized that Cambodia’s reliance on renewable energy has softened the impact of the global energy shock. Ongoing electrification and renewables deployment have stabilized domestic fuel consumption and reduced the country’s vulnerability to oil price spikes. He highlighted the need for regional energy integration, advocating for an ASEAN power grid to enhance collective resilience to external shocks.
Analytical Insights
1. Regional Dependencies and Vulnerabilities
Cambodia’s energy supply chain illustrates the strategic vulnerability of small, import-dependent states. Heavy reliance on neighboring suppliers—particularly Thailand, Vietnam, and China—creates exposure to policy shifts, export bans, and geopolitical shocks. The temporary pivot to Singapore and Malaysia demonstrates flexibility but underscores the structural limitations of Cambodia’s energy system.
2. Global Conflict as a Catalyst for Regional Disruption
The U.S.-Israeli war on Iran is creating cascading effects in Southeast Asia, amplifying supply risk. Even countries geographically distant from the Middle East are experiencing secondary consequences through disrupted trade flows and higher prices. Cambodia’s situation highlights the interconnectedness of global energy markets and the potential for conflicts in one region to create ripple effects worldwide.
3. Strategic Role of Renewables
Cambodia’s rapid deployment of renewable energy has acted as a buffer against full dependence on fossil fuel imports. By stabilizing domestic electricity generation, renewables reduce demand for imported petroleum and provide a partial hedge against supply shocks, illustrating the broader strategic value of energy diversification.
4. Regional Cooperation and Energy Integration
Rottanak’s advocacy for an ASEAN-wide power grid highlights the strategic logic of regional energy cooperation. Interconnected grids would allow energy flows to be reallocated dynamically in response to localized shortages, increasing resilience against both market and geopolitical shocks. Cambodia’s experience serves as a case study for the potential benefits of regional energy policy coordination.
5. Near-Term Risks and Policy Implications
Despite mitigations, Cambodia remains vulnerable due to limited storage capacity and a lack of refining infrastructure. Temporary supply increases from Singapore and Malaysia may address immediate needs but do not eliminate systemic risk. Policymakers must consider strategic fuel reserves, regional cooperation mechanisms, and continued investment in renewable capacity to enhance resilience in an increasingly volatile global energy environment.
Strategic Outlook
Cambodia’s fuel sourcing adjustments underscore the broader lessons for small, import-dependent economies: diversification of supply, domestic capacity development, and regional cooperation are critical to managing energy security in times of geopolitical and market shocks. The current crisis may accelerate renewable energy adoption and reinforce momentum toward ASEAN-level energy integration, but structural vulnerabilities remain in the near term.
With information from Reuters.
