SIBU: The anticipated sharp increase in cooking oil prices once subsidies are removed is going to affect most people, including a noodle stall operator.
Tay Yuen Chergn has been operating his Ah Chergn noodle stall opposite Wisma Sanyan with his aunt Monica Tay.
He is worried that the “domino effect” of higher price of cooking oil to his business.
“Prices of ingredients used in my noodles such as taufu and fishballs will also be higher,” he said.
He said he had no choice but to pass on the higher costs to customers.
“Three years ago, when most food vendors adjusted their food prices amid higher petrol prices, I did not follow suit.
“I am still selling at the old price even with the implementation of goods and services tax.
As such, his food was RM1 to RM2 lower, compared with other hawkers, Tay said.
“I sell laksa for RM3.50 a bowl, Lo Mee (egg noodle in thick broth) at RM4.50,” he added.
It has been reported that the subsidies for all but two sizes of cooking oil packages will be removed from Nov 1.
Unaffected until the end of the year are the 1kg polybag and 5kg bottle. Into the new year, only the price of the 1kg package will still be subsidised.
All other sizes, such as 500g, 1kg, 2kg, and 3kg bottles, will no longer be subsidised by the Government.
Tay, 26, said he used 10 bottles of 5kg cooking oil a month.
He said over the last two months, he had already experienced a drop in business as people went on austerity drive.
From previous experiences, he is also worried that cooking oil will fly off the shelves when people rush to stock up the item.