As tension between Thailand and Cambodia escalates, the Thai government announces measures to crack down on the world’s largest international scammer base, which is Cambodia. This is based on the data revealed by the United Nation not long ago.
One of those measures is suspending energy export to areas suspected for sheltering scammers. However, Cambodian Prime Minister Hun Manet announced a strong measure, ceasing to import all energy from Thailand as tensions near the border escalated.
Due to its small economic size, Cambodia is sensitive to energy costs as the nation did not have its own oil refinery. In the field of energy infrastructure, Cambodia has to rely solely on import, primarily from Thailand.
If Thailand stops feeding energy to Cambodia, the nation will have to seek alternative options, such as importing oil from Vietnam, Singapore, or China. This way, Cambodia will face higher transportation costs by 8 -15%, especially the transport of fuel oil and jet fuel.
Cambodia would face a lack of continuity in fuel transportation during the high season, which is around the year end and the new year. Meanwhile, internal operation and system would require some changes as well, especially its inventories and distribution system.
There is an estimation that if energy cost goes up by 5 – 7%, Cambodia’s cost of transportation, cost of living, and commodities will be affected. Aviation and tourism sectors would face headwind due to higher jet fuel costs.
