PM: Govt still subsidise cooking oil sold in packets

The cooking oil subsidised by the govt exceeds the actual needs of consumers, Ismail Sabri says

by ANIS HAZIM / Pic by MUHD AMIN NAHARUL

PRIME Minister (PM) Datuk Seri Ismail Sabri Yaakob said the government will continue to subsidise cooking oil sold in packets to consumers after July 1.

He was clarifying on the government’s decision to abolish the ceiling price for bottled cooking oil sold from July 1. 

“The government still maintains cooking oil subsidies, with a total of RM4 billion for 2022 compared to RM500 million in 2020 and RM2.2 billion in 2021.

“Cooking oil subsidised by the government is 60,000 metric tonnes per month, exceeding the actual needs of consumers which is 55,000 metric tonnes per month,” Ismail Sabri said.

He said the government has borne the subsidy for the packet of cooking oil to RM2.50 per kg from the actual market price of RM9 per kg for the bottom 40% category since June 2007.

During the Covid-19 pandemic, the government introduced a temporary subsidy programme for cooking oil for 1kg, 2kg, 3kg and 5kg in August 2021 to help those affected.

“This temporary subsidy programme for cooking oil is only for a period of three months at a cost of RM55 million per month,” he said. 

However, the government found that subsidised bottled cooking oil was heavily misused by the industry, commercial and smuggling activities.

“In this regard, the government has decided not to extend the subsidies for bottled cooking oil from July 1, as the initial objective of this programme is to help those affected by the pandemic,” he added.

Hence, only the subsidy for packet cooking oil will remain, which the government believes that the subsidy of 60,000 metric tonnes per month is sufficient for Malaysian families.