Two-tier pricing for cooking oil in the works

THE Cabinet has agreed in principle to a plan for a two-tier pricing scheme for cooking oil, says Datuk Armizan Mohd Ali.

In his reply to the Budget 2024 debate, the Domestic Trade and Cost of Living Acting Minister said that engagements would be held with other ministries on the matter.

Datuk Rosol Wahid (PN-Hulu Terengganu) then interjected and claimed that a nationwide cooking oil shortage was due to delays in the government’s payment of subsidies to producers.

These delays had then affected the production of subsidised cooking oil.

In response, Armizan blamed the delayed payments on the drastic rise in prices for crude palm oil (CPO), the main ingredient in local cooking oil.

“In 2019, we only spent RM269mil (in subsidies), which increased to RM528.2mil in 2020.

“In 2021, (the subsidy bill) was RM2.19bil, in 2022 it was RM2.41bil, and in 2023 it was projected to hit RM1.9bil,” he said.

He said some RM900mil in subsidies had been paid so far to cooking oil producers, and the ministry had received an additional RM350mil.

“The Finance Ministry has given a commitment that once the RM350mil is spent, the next round of funds will be channelled to ensure that we can fulfil our responsibilities to make the payment for this year,” he said.