Cambodia cuts electric vehicle import duties amid global fuel price surge

Monday 30 March 2026 - 10:08

By: Dakir Madiha

Cambodia cuts electric vehicle import duties amid global fuel price surge

Cambodia will eliminate import duties on passenger electric vehicles, reducing the rate from 35% to zero effective April 1. The government also removed duties on electric vehicle battery chargers, electric motors, lithium batteries and solar energy devices to help consumers cope with rising energy costs.

The country imports all its oil and now faces steep fuel price increases. Since the military conflict started on February 28 with US and Israeli airstrikes on Iran, regular gasoline prices rose 41.5%, diesel jumped 84% and liquefied petroleum gas climbed 60% in Cambodia, according to the Ministry of Commerce.

South Korea set a record with 35,693 new electric vehicle registrations in February, up 171.9% from last year. The Korea Automobile & Mobility Association reported this surge came from early government subsidies and price cuts by Hyundai, Kia, Tesla and Volvo. Meanwhile, gasoline vehicle registrations fell 27.8% and diesel plunged 57.1% year-over-year.

The trend spreads elsewhere. In the United States, CarEdge data showed a 20% jump in electric vehicle search traffic during the conflict's first week, with interest in Tesla Model Y and Chevrolet Equinox EV nearly doubling. Europe saw rising used electric vehicle sales as gasoline prices increased about 8% since late February, per the European Commission. A German Carwow survey found 48% of respondents would consider electric or hybrid vehicles due to higher fuel costs.

The Iran conflict disrupted shipping through the Strait of Hormuz, which carries 20% of global traded oil. Brent crude topped $112 per barrel on March 20, its highest since July. Vietnam's VinFast offered discounts to switch from gasoline cars, while BYD dealers in the Philippines reported two weeks of orders matching a normal month's sales.

Harvard researcher Elaine Buckberg, former chief economist at General Motors, noted two major oil price shocks in five years, the Ukraine war and Iran crisis, have made consumers more sensitive. She said if high prices last beyond three months, even those not planning to buy a car will seriously consider electric vehicles.