Change for Gas

by Mohd Khairie


Somebody once asked, "Could you spare some change for gas?
I need to get myself away from this place,"
I said yep, what a concept,
I could use a little fuel myself,
and we could all use a little change…


It's funny how this phrase from Smash Mouth's 'All Star' fit perfectly to describing the scenario in present day Cambodia. There aren't a lot of cars around, but the streets are packed with motorbikes and their close cousin, the tuk-tuks, or better described as motorcycle carriages. Yet, while this country's primary mode of transport are through the use of motorcycles, fuel prices have been increasing steadily, putting additional strain on the citizens of this developing nation…

I'm no statistician, but at least within the provincial city of Siem Reap, I can say with certainty that motorcycles are the primary mode of transport. Walk across a busy street in Siem Reap, and you'll be dodging waves of motorcyclists instead of incoming cars. Trot on the sidewalk and you'll be perpetually asked by smiling tuk-tuk drivers to come onto their carriages and let them take you wherever you need to go. You won't find parking lots in Siem Reap – just plenty of bicycles and motorcycles stashed at the side.

A mere two minutes walk away from the motel I'm staying at, is a petrol station. But if you're thinking of concrete pillars with petrol booths and fuel pumps, of an air-conditioned convenience store with a cashier through a glass window and an exchange compartment, of toilets and air pumps for your tires, you need to think again.

In Siem Reap, petrol is largely sold in soft drink bottles, the plastic variety that you buy at a convenience store in a stall by the side of the road. Arranged neatly are colorful plastic bottles filled with red and orange liquid that could almost pass for the original soft drink, if it weren't for the fact that they were sold out in wooden racks on the street directly under the intense heat of the sun. 1.5 liters of petrol are sold in your average large bottle of Coke or Sprite – for those who just want to buy a liter can help themselves to the small whiskey bottles of petrol. You don't use pumps here – you pour everything into a funnel directly into your tank.

A no-frills petrol kiosk

Yet what makes this crude way of distributing petrol even more incredible, are the prices. 1 liter of petrol in Siem Reap costs about 5500 riel – roughly 1.38 USD, or RM 4.50. This contrasts largely to the prices of its neighboring country, for example Vietnam, which sells a liter of their petrol for only 4000 riel – a mere one US dollar.

Sieng Lay, one of the local tuk-tuk drivers who waits outside my motel everyday makes between 10-12 USD a day. "Petrol is cheaper outside, like in Vietnam," he says. "Only 4000 Riel for 1 liter."

Nevertheless, Sieng Lay seems to be the lucky one of his lot. "I get between 3-4 dollars profit a day. I can still afford to send my niece to school," he continues. "But if I can't afford to buy petrol that day, I don't work."

Indeed, increased petrol prices have also caused inflation of goods and commodities, making it harder for the people of Siem Reap to afford comfortable standards of living. Soon Sang, 21, is a freelance construction worker who works by handling high-powered heavy machinery.

"It's difficult to stay in Cambodia," he says, after having just filled his motorcycle with petrol from a one liter used whiskey bottle. "The price of petrol increases day by day."

He should know, working in his line of work. While his motorcycle consumes a humble 2 liters a day, his machinery on the other hand consumes on average 150 liters of petrol per day. That adds up to a staggering total of 207 USD on fuel alone, just for a day's work.

These expensive fuel prices are daunting enough for the citizens of a country in which more than 35% of the population live below the poverty line, with the average income being a dollar a day. Nevertheless, Cambodia might be getting a big break with its recent discovery of gas and oil reserves off the shores of Sihanoukville in southern Cambodia.

Its initial findings, estimated by the World Bank and United Nations' Development Program, could be between 400-500 million barrels of oil, generating an income of 4.6 billion USD every year for the next 2 decades. While the oil windfall is expected to aid with expensive imports of liquefied petroleum gas, (LPG) there are still several complications dogging this fortunate discovery.

A primary complication regarding this concerns the widespread corruption in Cambodia. Ranked as one of the most corrupted countries in the world, Cambodia's oil investments could be lost to corruption instead of being spent or invested in the way of much needed development projects. The lack of stable governance and a strong system of checks and balances could lead to the futile dispersion of resources, widening income gaps and further entrenching much of its citizens in poverty.

It's important then that the Cambodian administration establish a strong plan of action prior to mining this oil and gas reserves. In order for the people to enjoy the benefits of this oil supply, a system of transparency must be installed, which would simultaneously win the confidence of foreign investors and reroute the profits of the oil reserve back to developmental projects for the people.

Profits must focus towards the much needed development in infrastructure, not to mention subsidies in energy and oil based industries. This would relieve the economic stress on those living under the poverty line and stimulate not only a bigger economic growth but a more balanced one that is more holistic of the citizens of Cambodia. Perhaps, with the right system in place, the government could spare come change for gas, and we could all use a more positive change.