PPC founder explains why gas prices in Thailand are cheaper than in Cambodia

2026-03-18 - 09:51

Differences in fuel composition help explain why petrol prices in Thailand can appear lower than in Cambodia, according to a Cambodian energy executive responding to online debate. Tea Siam, chairman and founder of Peace Petroleum, said the gap is largely due to the types of fuel sold in each country rather than simple pricing differences. In a Facebook post on 16 March, he explained that Thailand widely uses blended fuels such as gasohol and biodiesel, including Gasohol 91, Gasohol 95, E20, E85 and diesel B7/B20. These fuels are mixed with ethanol or biodiesel, which can be produced from crops like sugarcane or cassava, helping reduce costs. By contrast, Cambodia mainly uses conventional fuels such as 92 and 95 gasoline and standard diesel, which do not include such blends and therefore tend to be priced higher. “The base fuel is similar, but blending with ethanol or biodiesel lowers the cost,” he said, noting that such fuels may lead to slightly higher consumption and may not suit older vehicles without modification. However, most modern cars can use blended fuels. He added that adopting such fuel systems requires significant infrastructure, including refineries, domestic ethanol production and large-scale blending facilities — factors that Cambodia currently lacks. Tea Siam said the comparison has led to misconceptions, stressing that Cambodia’s fuel prices are not unusually high, but that some countries are able to lower retail prices through alternative fuel blending.