KUALA LUMPUR: The rising prices of crude palm oil (CPO) are among the factors contributing to the significant increase in prices of cooking oil in the local market.
The Plantation Industries and Commodities Ministry (MPIC) said palm oil prices showed a significant upward trend from mid-2020 and had, between January last year and May this year, frequently broken record high prices in the industry's history.
Its minister, Datuk Zuraida Kamaruddin, said in statement today that the market price of palm oil was constantly fluctuating based on fundamental factors and current market sentiments.
She said other factors that contributed to the increase in CPO prices included low CPO production, rising soybean oil prices, Brent Crude Oil price increases and strong palm oil exports in key markets.
However, Zuraida said the increase in cooking oil prices was still offset by the government through a subsidy for 60,000 tonnes or 60 million kg of cooking oil packets in the form of 1 kg polybags per month to meet the needs of local consumers, especially for the B40 group.
The price of a subsidised packet of cooking oil for local consumers is RM2.50 per kg, compared with the actual market price of around RM6.00 per kg.
MPIC said it was confident that with the cooperation of the government machinery among ministries, the prices of cooking oil will come down gradually.
"MPIC will continue to hold engagement sessions to find win-win solutions for all and ensure the welfare of oil palm smallholders.
"In addition, MPIC is committed to ensuring the palm oil industry remains the largest commodity sector and continues to contribute to the country's economic development to ensure the wellbeing of the people," she said.
She added that MPIC welcomed the announcement by the "Jihad Against Inflation" special task force that the prices of cooking oil would be reduced in stages.
Zuraida said the ministry had also conducted a series of dialogues with key players in the palm oil industry to find solutions to address the rising prices of this essential item without compromising on the competitiveness of the sector.
"The industry cooperates with the government on this matter based on the spirit of the Malaysian Family," she added.
