KOTA KINABALU – Plantation Industries and Commodities Minister Datuk Zuraida Kamaruddin has allayed concerns over the likelihood that the price of subsidised palm cooking oil will increase after July 1.
She said there has probably been a “misunderstanding” over the issue as the cooking oil subsidy was not lifted but reverted to its original pricing mechanism.
“There have been some misunderstandings on the matter. The original subsidised cooking oil amounted to 60,000 metric tonnes a month or 720,000 metric tonnes a year. They are being sold in 1kg polybags.
“But what the government is ending is the additional subsidised cooking oil of 25,000 metric tonnes introduced during the Covid-19 pandemic, when Malaysians were facing financial difficulties. It was a temporary measure.
“So, the original subsidised amount was 60,000 metric tonnes plus the additional 25,000 metric tonnes during the pandemic.
“This (the 25,000 metric tonnes of cooking oil) is the subsidy that is being stopped on July 1. The subsidised 60,000 metric tonnes will be retained,” she said this at a press conference during the Malaysia Cocoa Board award ceremony here last night.
Towards this end, she said there is no need for panic buying as there is enough palm cooking oil for domestic use and for export.
On Tuesday, the government said it will end all subsidies on bottled palm cooking oil products effective July 1, with the current price of RM29.70 for a 5kg bottle expected to increase, said Domestic Trade and Consumer Affairs Minister Datuk Seri Alexander Nanta Linggi.
He said the subsidy, introduced last year and initially meant to last for only three months, will be removed for bottled products sold in 2kg, 3kg, and 5kg bottles.
According to the ministry, the maximum retail price for palm cooking oil in 5kg bottles is at RM29.70 per bottle, 1kg bottle (RM6.70), 2kg (RM12.70), and 3kg (RM18.70). – The Vibes, June 23, 2022
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