Subsidised cooking oil shortage due to higher income groups taking advantage of situation

Deputy Minister of Domestic, Trade and Consumer Affairs, Datuk Rosol Wahid said the packet of cooking oil was intended for the lower-income (B40) groups.

He added the government needs to fork out a large sum by allocating 60,000 tonnes of packaged oil per month, with the subsidy given per kilogramme (kg) ranging from RM2.50 to over RM3 depending on the current price.

"One kg of subsidised cooking oil packet is sold at a retail price of RM2.50, whereas the current price stands at RM5 or RM6. For one kg, the government had to bear the cost of over RM3, " he said.

He told reporters after a Walkabout programme at the Rantau Panjang Immigration, Customs, Quarantine, and Security (ICQS) Complex, here today.

Elaborating, Rosol said the ministry has also identified food stall and restaurant traders who had been using the subsidised oil, which had also resulted in the short supply in the market.

"This issue, not only happens in Kelantan but also in Melaka, Negeri Sembilan, and other states. Last year, the shortage was allegedly becuase of late payment to the repackaging company, We have paid them, so the issue does not arise anymore," he explained.

Asked if the short supply was also due to the Malaysian Family Sales programme, Rosol said the programme only involved one or two repackaging companies.