KUALA LUMPUR – The government’s cooking oil subsidy has reduced the negative impact of palm oil price fluctuations in the world market on local consumers, said the Plantation Industries and Commodities Ministry.
Minister Datuk Mohd Khairuddin Aman Razali, in a statement today, said the increase in cooking oil prices locally is slight despite crude palm oil (CPO) prices rising significantly from July 2019 to this month.
“Besides that, consumers, especially those in the B40 group, have the option to buy 1kg of subsidised cooking oil at RM2.50.”
In the 2019-2020 period, the average CPO price in the local market fell to its lowest level of RM1,879 per tonne in July 2019 and saw its highest of RM3,620.50 per tonne last month, he said.
He added that the CPO price increased 92.7%, or RM1,741.50, a tonne from the lowest level recorded in 2019.
“The price of palm oil and palm oil-based products is determined by the world market, involving factors such as demand and supply.
“This price increase has also raised the country’s revenue, besides helping about 500,000 oil palm smallholders improve their socio-economic status.”
He expressed hope that global palm oil prices will continue to remain high this year, so that the people will be able to enjoy the benefits in terms of the returns made by the government.
At the same time, said Khairuddin, the ministry is concerned about the issue of rising cooking oil prices in the local market.
“Malaysian Palm Oil Board data shows that about a million tonnes of palm oil are allotted for the use of the local cooking oil market, with a fraction of 0.72 million tonnes for subsidised cooking oil in 1kg plastic packets.
“The remaining 0.28 million tonnes are not subsidised, and can be bought in bottles of 1kg to 5kg, and 17kg containers.”
Malaysia exported 24 million tonnes of palm oil and related products worth RM64.8 billion from January to November last year. – Bernama, January 20, 2021
