Rationalisation of cooking oil prices helps curb smuggling activities

The move to implement the rationalisation of cooking oil prices is aimed at controlling smuggling of the essential item to the neighbouring countries.

Domestic Trade, Cooperatives and Consumerism Minister Datuk Seri Hamzah Zainudin told a media conference after launching the NH Korea @ Pasarnita programme here Tuesday that previously there were many instances of smuggling involving 5kg cooking oil bottles, but now with only 1kg cooking oil packets being subsidised, the monitoring of the item had become more focused.

Also present was Advisor on Women Entrepreneurship and Professional Development in the Prime Minister's Department, Tan Sri Shahrizat Abdul Jalil.

When asked whether the government will increase the quota of 1kg cooking oil packets, Hamzah said the quantity exceeded current needs.

"The average cooking oil usage for each individual is 1.5kg a month. Thus, with a total of 30 million people, 45,000 metric tonnes of cooking oil is needed in a month."

On Oct 26, Hamzah had announced the restructuring of the cooking oil price stabilisation scheme.

Under the restructuring of initiative, the price of 1kg cooking oil packets remained at RM2.50 while those sold in bottles were sold according to the market price.

Hamzah also suggested the formation of 'Koperasi Pasarnita' to enable small cooperatives to be merged, hence easing the process of marketing of products abroad.

"The ministry also wants Pasarnita to source and develop products that are sold in small scale, especially in villages, by creating better packaging for the goods to be marketed in the country and abroad," he said. -- Bernama