PUTRAJAYA: The Ministry of Domestic Trade and Costs of Living (KPDN) has dismantled a syndicate allegedly mixing subsidised cooking oil with used oil and reselling it at inflated prices.
Its minister, Datuk Armizan Mohd Ali, said the syndicate was uncovered during two separate raids on Tuesday at a residence in Taman Kajang Jaya and a business premises in Bandar Rincing, Selangor.
The residential unit was suspected of being used to store subsidised cooking oil packets, which were cut open and transferred into Intermediate Bulk Container (IBC) tanks before being transported to the second site for mixing with used cooking oil.
According to Armizan, the syndicate, believed to have been operating for six months, purchased cooking oil packets in bulk from suppliers at RM2.50 per kilogram (kg), mixed them with used cooking oil, and resold the blend for RM3.80 to RM5 per kg.
“This black-market trade is very lucrative. Processed used oil can be converted into biodiesel, which has high demand both domestically and in neighbouring countries,” Armizan told a press conference today.
So far, KPDN has arrested 15 suspects, comprising 11 foreign and four local men aged between 25 and 45, who are remanded until Saturday.
He said authorities also seized 14,340 kg of subsidised cooking oil and equipment valued at RM429,850. The case is being investigated under the Control of Supplies Act 1961 and the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 (AMLA).
Armizan warned that more syndicates may be using similar tactics nationwide, adding, “We will take decisive action not only against these syndicates but also the packers, wholesalers, and retailers involved.”
The minister also urged the public to report any smuggling, embezzlement, or diversion of subsidised goods to KPDN, emphasising that public participation was instrumental in uncovering the syndicate’s operations in this case.
“This raid is a result of public cooperation, highlighting the importance of public involvement in helping KPDN and the government curb leakage and control subsidised goods,” he said.
