Domestic Trade Ministry studying possibility subsidised cooking oil sold as used oil

KANGAR: The Domestic Trade and Cost of Living Ministry is studying the possibility that subsidised cooking oil packets are being sold by certain parties as used cooking oil, causing supply disruption in the market.

Its Deputy Minister Fuziah Salleh said there is room for irregularities when subsidised cooking oil packets are now sold at a price of RM2.50 per kilogramme while the price of used cooking oil can reach up to RM3.80 per kg.

She said that the government allocates a total of 60,000 metric tonnes of subsidised cooking oil every month, and it should be enough to cover the needs of 5.8 million households, comprising the B40 group and some M40.

"Household needs are usually only 4.8kg per month, but micro traders who use a lot, these micro traders use approximately 400 packets per month, such as school canteens, cafe traders, in addition to hawkers selling pisang goreng and keropok lekor.

"In the past, they (micro traders) might use the same cooking oil again and again, but because used cooking oil today can fetch up to RM3.80 per kg, traders do not need to recycle it many times but sell it (as used oil),” she said at a press conference, after officiating the Jualan Rahmah Berganda here on Saturday (Nov 18).

She was asked to comment on the leak related to subsidised cooking oil following the ministry's proposal to increase the price of the item.

Fuziah said no complaints have been received thus far by the ministry regarding subsidised cooking oil packets sold as used cooking oil.

She added that the proposal to raise the price of the product is part of a measure to target subsidies to the needy, in addition to ensuring that it is not easily sold as used cooking oil.

Meanwhile, Fuziah said that the ministry was conducting an audit on the entire production and supply chain of subsidised cooking oil nationwide, to detect any leakage.

"This audit will be completed in the first quarter of next year, and when the audit is completed there will be recommendations regarding the next course of action. This audit is related to various matters, including issues of integrity related to the cooking oil supply chain.

"We have a Cooking Oil Price Stabilisation System (eCOSS) in place, where the system can monitor the movement of the oil from the refinery to packaging companies to the wholesalers and retailers,” she said. - Bernama