Fuel ban hits Thai energy giant as Cambodia shifts to regional suppliers
Fuel ban hits Thai energy giant as Cambodia shifts to regional suppliers
Effective midnight on 23 June 2025, Hun Manet, Prime Minister of Cambodia, ordered the suspension of all imports of fuel and gas from Thailand amid the border disputes between the two countries. At the same time, Cambodia also appears to be leveraging the moment to diversify its energy sources away from Thailand, with the well-connected Kampuchea Tela, the largest energy player in the country, standing to gain even more market share as PTT Oil and Retail Business Public Company Limited (PTT OR), the Thai state enterprise and second-largest fuel distributor in the country, suffers a setback.
PTT OR’s ‘Second Homebase' plan, part of its global market strategy, which was unveiled just three months earlier, has been significantly disrupted. In Neak Vorn, Phnom Penh, a flagship PTT station just reopened on 21 March after a period of renovations, featuring EV charging stations, an expanded Café Amazon, and new services such as Otteri Wash & Dry and 7-Eleven, and Mike’s Burger. That same day, the first Café Amazon Concept Store opened in Toul Kork, marking the 254th Café Amazon branch in Cambodia. The Thai embassy in Cambodia said that the openings coincided with the 75th anniversary of Thai-Cambodian diplomatic relations and the 30th anniversary of PTT Cambodia’s operations.
However, PTT OR's 186 gas stations across Cambodia, operating under PTT Cambodia Limited (PTTCL), are now limited to selling off remaining stock, with their business effectively confined to non-oil operations such as Café Amazon outlets and convenience stores. PTT has already recalled its Thai employees from Cambodia as of 22 June, leaving primarily Cambodian staff. There have also been reports of online campaigns urging a boycott of PTT stations in Cambodia. Some PTT partner stations said that they couldn’t stop all services because they are not entirely owned by PTT and they can still import oil from other sources.
[(From left to right) Nuttapong Kaewtrakulpong, Managing Director of PTTCL; Cheap Sour, Deputy Minister of Mines and Energy of Cambodia; Tull Traisorat, Thai Ambassador to Cambodia; M.L. Peekthong Thongyai, CEO of PTTOR and 2 executives from PTTOR and PTTCL, attended the opening ceremony of the PTT Neak Vorn service station in Phnom Penh, Cambodia, on 21 March 2025.
Source: Tone Peekthong’s Facebook page
On 3 July, Senate President Hun Sen clarified that the owners of Thailand’s PTT gas stations in Cambodia may continue operating under the same brand, but must source fuel from countries other than Thailand, such as Vietnam, Singapore, and Malaysia. According to the Khmer Times, he also “outlined four key areas, namely electricity, internet, fuel, and more, where Cambodia must achieve self-reliance to counter future threats like those from Thailand.”
This firm stance was demonstrated by the Cambodian navy in expelling the oil tanker Chetthanabodi 6 from Cambodian waters on 27 June after it was found to have entered illegally. The vessel, carrying diesel for the Cambodian oil company Sokimex under a pre-paid three-month contract with PTT OR, was told it could not dock as it was traveling the night the fuel ban took effect. Cambodia's Minister of Mines and Energy, Keo Rottanak, reiterated that no oil or gas imports from Thailand would be permitted under any circumstances now that the government's import ban has taken effect.
With PTT OR's market share under threat, Kampuchea Tela, identified as the largest market shareholder in Cambodia's fuel business with over 2,000 service stations, stands to increase its dominance. Kampuchea Tela wasted no time in affirming its readiness to supply fuel, posting videos of its oil trucks preparing to depart from depots just hours after the import ban took effect. Smaller players such as Caltex (Chevron Cambodia), Total Cambodge (TotalEnergies), Sokimex (Sok Kong Import Export) and Bright Victory Mekong Petroleum, are conducting business as usual although they may be constrained by the ban.
A video clip on the Kampuchea Tela Facebook page showing a convoy of fuel trucks preparing to leave its oil depot, demonstrating its readiness to supply fuel and energy in Cambodia, was posted at noon on 23 June, 12 hours after the fuel import suspension from Thailand took effect.
Kampuchea Tela is known for its close ties to the Cambodian ruling elite and the Cambodian People's Party (CPP). Although its founder, Chun On, is not a direct relative of Hun Sen, allegations by the former opposition Sam Rainsy Party in 2005 claimed that Hun Sen's wife, Bun Rany, held a 22% stake and his daughter, Hun Mana, a 10% stake in Kampuchea Tela. The opposition further suggested the company served as an economic instrument for the CPP and Hun Sen's network, with other shareholders acting as nominees.
The Cambodian government asserts that its domestic fuel distribution companies are capable of importing sufficient oil and gas from alternative sources to meet national demand for the long term. Cambodia already imports most of its refined oil from Vietnam, Singapore, and Indonesia. While Casey Barnett, President of the American Chamber of Commerce in Cambodia, said that Thailand and Vietnam each supplied about 29% of Cambodia's oil, and Cambodia can readily shift more purchases to Singapore (11%), a major hub for refined oil originating from Saudi Arabia and the USA, Thailand's Department of Energy Business claimed Thailand supplied a significantly higher 67.4%.
Cambodia currently lacks its own oil refinery, with past efforts to develop offshore oil fields and establish refineries facing setbacks and delays. In 2024, Cambodia's total imports of diesel, petroleum, and gas amounted to US$2.69 billion, an increase of 12% from the previous year. The Ministry of Mines and Energy projects that domestic oil demand will rise to 4.8 million tonnes by 2030, from 2.8 million tonnes in 2020. Cambodia's high reliance on internal combustion engine vehicles, with over 7.7 million registered vehicles in March 2025 (85% motorcycles, 10% private cars, 5% trucks and others), underscores its significant and growing fuel needs. Electric vehicles, despite a recent increase in registrations, remain a small fraction of the total fleet with limited charging infrastructure.
The ban is currently still in effect. Khmer Times reported that, on 16 July, Cambodia's General Department of Customs and Excise reissued a directive banning imports of fruits, vegetables, and fuel and gas from Thailand.
eng editor 1
Fri, 2025-07-18 - 14:49
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