THE Plantation Industries and Commodities Ministry (MPIC) has applauded the announcement by the Special Task Force on Jihad Against Inflation that the prices of cooking oil will be reduced in stages.
This follows an agreement from those in the palm oil industry to adjust the prices based on the current market prices of crude palm oil (CPO).
The Ministry noted in a statement today (July 15) that it had previously organised a series of dialogues with key players in the palm oil industry to seek solutions to address the rising prices of cooking oil without compromising the competitiveness of the sector.
“The market price of palm oil constantly fluctuates based on fundamental factors and current market sentiments,” its minister Datuk Zuraida Kamaruddin shared.
“Palm oil prices started to show significant upward trend from mid-2020 and had on several occasions broken record high prices in the history of the country’s palm oil industry from January 2021 to May 2022.
“Rising CPO prices have led to the prices of palm oil products, including cooking oil, to increase significantly in the local market.”
According to Zuraida, the four main factors that contribute to the increase in CPO prices are the low CPO production, rising soybean oil (SBO) prices, Brent Crude Oil (BCO) price increases, and strong palm oil exports in key markets.
“However, the increase in cooking oil prices is still offset by the Government through subsidy for 60,000 tonnes or 60,000,000kgs of cooking oil packets (1kg polybag) per month to meet the needs of local consumers especially for the B40 group,” she remarked.
“The price of a subsidised packet of cooking oil for local consumers is RM2.50 per kg compared to the actual market price of around RM6.00 per kg.
“MPIC is confident that with the cooperation of the Government machinery in all relevant ministries, the prices of cooking oil will come down gradually.”
Zuraida further gave assurance that MPIC will also continue to hold engagement sessions to find win-win solutions for all parties and ensure the welfare of palm oil 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.”
Yesterday (July 14) the Special Task Force on Jihad Against Inflation chairperson Tan Sri Annuar Musa, who is also Communications and Multimedia Minister, said industry players had agreed with the special task force’s recommendation to reduce prices of cooking oil, which was expected to be implemented soon.
He also said that this was a good development and an example of how all quarters could cooperate to benefit the people. – July 15, 2022
