KUALA LUMPUR: The subsidy for cooking oil is part of a strategy to reduce the negative impact of palm oil price fluctuations in the world market on local consumers, according to the Plantation Industries and Commodities Ministry.
Its minister Datuk Mohd Khairuddin Aman Razali said the increase in cooking oil prices in the local market is still small although crude palm oil (CPO) prices had risen significantly from July 2019 to January this year.
“Consumers have the option to buy subsidised cooking oil at RM2.50 per kg,” he said in a statement yesterday.
Mohd Khairuddin said the average CPO price in the local market was at its lowest at RM1,879 per tonne in July 2019 and the highest, at RM3,620.50 per tonne in December 2020.
He said this was an increase of RM1,741.50 per tonne, or 92.7%.
“The price of palm oil and palm-based products is determined by global market factors such as demand and supply.
“The price increase has also raised the country’s revenue besides helping about 500,000 oil palm smallholders to improve their socio-economic status.”
Mohd Khairuddin hoped that palm oil prices would remain high for this year so that people could continue to benefit, Bernama reported.
At the same time, he said the ministry was very concerned about rising cooking oil prices in the local market. “Malaysian Palm Oil Board data shows that about one million tonnes of palm oil are allotted for the local cooking oil market, with 0.72 million tonnes allocated for subsidised cooking oil.
“Meanwhile, the remaining 0.28 million tonnes are non-subsidised, which can be obtained in 1kg to 5kg bottles, and 17kg tins.”
Malaysia exported 24 million tonnes of palm oil and palm-based products worth RM64.8 billion for the period January-November 2020.
