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KUALA LUMPUR – The government will end all subsidies on bottled cooking palm 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.
“However, I must stress that the removal of subsidies does not include the 1kg polybags of oil usually sold at RM2.50. Those will continue to be subsidised.
“But for others, subsidies for bottled palm oil products will end and is expected to increase in price by a few ringgit,” he said during a press conference posted on his ministry’s Facebook page.
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).
When pressed to explain the government’s reasoning behind the subsidy removal, he said the introduction of the subsidy last August was meant to be temporary.
“So, now the government feels the time has come to abolish the subsidy so that it can focus on efforts to help others in need through targeted assistance,” he said, adding that around RM20 million was spent monthly on the oil subsidy.
Meanwhile, the government will no longer impose a ceiling price control on poultry and chicken eggs July 1 onwards.
When asked about the government’s price projection of chicken July 1 onwards, Nanta played coy on how much of an increase he expects to see.
However, he denied prices would reach projections of RM12 per kg, saying he expects a marginal increase in prices.
“Based on our engagement session with stakeholders, they said it would not reach that (RM12) level. It will just be a little more than RM10 (per kg), which is what we hope for.”
Under the maximum retail price list, poultry is selling for RM8.90/kg for Standard Round Chicken and RM9.90/kg for Super Round Chicken in Peninsular Malaysia.
Chicken eggs are priced at 43 sen each for Grade A, 41 sen each for Grade B, and 39 sen each for Grade C. The ceiling price in Langkawi, Sabah, Sarawak and Labuan varies by district.
Additionally, Nanta said enforcement officers from his ministry have begun monitoring the markets for any attempts to withhold stock in anticipation of a price increase after July 1.
He added that the ministry would not hesitate to enforce provisions under the Price Control Anti-Profiteering Act 2011 against those found going against the law.
“My assurance is that if prices do increase exponentially, and if there are elements of profiteering proven, we will not hesitate to enforce the anti-profiteering act.” – The Vibes, June 21, 2022
