PETALING JAYA: Special incentives may be given to companies to ensure there is enough supply of bottled cooking oil, says the Domestic Trade and Cost of Living Ministry.
Its Minister Datuk Armizan Mohd Ali said the incentives were among intervention measures decided upon after a special briefing with Prime Minister Datuk Seri Anwar Ibrahim on Friday (March 7) to stabilise bottled cooking oil supplies.
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“The ministry has been ordered to follow up by instructing the companies concerned to continue supplying the product (to the market)," he said in a statement.
Armizan said the ministry would also be increasing enforcement to ensure there is no hoarding or leakage involving all types of cooking oil.
“We will make sure the decision is implemented to ensure that the companies concerned will produce enough bottled cooking oil for the market to recover soon," he added.
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On the shortages, Armizan explained that it was due to the increasing production cost of crude palm oil (CPO), which increased drastically for the past two years.
For January, the average price of crude palm oil cost RM4,672.50 before increasing to RM4,759 in February, according to him.
Following the prolonged effects of high CPO prices, Armizan said bottled cooking oil producers had reduced production to control their costs.
He said this is because they are bound by regulations on e enforcement of maximum prices for bottled cooking oils.
“For example, the order mandates the sale of a 5kg bottle at RM30.90 at the retail level, compared to global CPO prices which stand at RM36,16,” he said.
Armizan also expressed the ministry’s appreciation for the Prime Minister and Finance Ministry’s decision to consider providing special incentives to bottled cooking oil producers to ensure stable supplies throughout Ramadan and leading into Syawal.
On Thursday (March 6), it was reported that local cooking oil supplies were scarce, especially for 1kg and 2kg bottles of local cooking oil, across various parts of Johor.
Checks by The Star at sundry shops and supermarkets in Larkin, Tampoi, Pasir Gudang and Kulai found empty shelves as retailers say the cooking oil has been out of stock since the beginning of the year.
It was also reported that Ramadan bazaar traders in Johor were forced to visit multiple supermarkets to secure enough supplies.
