OR Weighs Cambodia Exit After 70% Sales Plunge
PTT Oil and Retail Business (OR) forecasts a fuel demand rebound in late 2026 and early 2027 but faces pressure from volatile global oil prices and a deeply negative Thai fuel fund. The company is negotiating lower refinery costs under new government pricing rules and is considering selling its Cambodia operations, where sales have plunged 70 percent and the station network has halved.
OR Executive Vice President for Corporate Strategy Nisit Phongwutthipraphan said fuel demand in Q4 2026 is trending up from Q3 due to the tourism season, extending into Q1 2027 from year-end and New Year travel. The 2027 outlook depends on global oil prices and economic recovery; if oil returns to $60-70 per barrel and the economy improves, consumption could expand. Industry players see three scenarios: prices dropping to $70-80 by February 2027, stabilizing around $90, or holding high at $90-100. This volatility risks consumers and operators, especially in Thailand where the fuel fund subsidizes retail prices and is currently negative by over 100 billion baht. The government must balance living-cost relief with fund liquidity. Meanwhile, the Energy Ministry plans to restructure oil pricing by removing notional costs, forcing retailers to adapt. OR is negotiating with refineries to lower procurement costs accordingly. In Cambodia, OR is deciding whether to exit or continue after heavy market impact. Sales through PTT Station outlets fell roughly 70 percent, as did Café Amazon sales. The network has shrunk from about 200 stations to fewer than 100 as local dealers switched brands. OR will base its decision on the business's valuation; if it continues, clear cost management and profitability plans are needed to avoid long-term losses.
