Subsidy removed from next month for anything above 1kg
PUTRAJAYA – Oct 26, 2016: The price of a packet of 1kg of cooking oil will continue to be sold for RM2.50.
However the subsidy will no longer be given for any amount more than this.
The government-approved market price for anything above 1 kg is between RM3.70 and RM3.90 per kg. Anyone known to be selling for more than this should be reported to the domestic trade, cooperative and consumerism ministry.
In confirming the government decision today, minister Datuk Seri Hamzah Zainuddin said the adjustment is part of the cooking oil stabilisation scheme.
The scheme, part of the cooking oil subsidy rationalisation plan, is intended to effectively channel the subsidy for the benefit of the low income group.
In line with this decision, the ministry will distribute more one kilogramme packs to retailers and wholesalers it has identified.
Yesterday, the ministry caught three retailers who had increased the price. Two were in Selangor and the other from Penang.
Hamzah anticipates that the readjustment of the subsidy will curb rampant smuggling of cooking oil to a neighbouring country.
Three days ago, Second Finance Minister Datuk Johari Abdul Ghani stated that the smuggling has been costing the government RM540 million a year.