Govt to stop subsidising bottled cooking oil
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PUTRAJAYA will maintain its subsidy for the 1kg cooking oil in polybags but will remove the subsidy for bottled cooking oil effective June 30, Ismail Sabri Yakkob clarified today.
The prime minister said there had been confusion since the government’s announcement on the removal of subsidy for bottled cooking oil yesterday.
“The temporary subsidy on bottled cooking oil will not be extended for 1kg, 2kg, 3kg and 5kg bottles, but the subsidy for cooking oil in packets will continue,” he said in a special televised broadcast today.
He said that the subsidy for bottled cooking oil was introduced during the Covid-19 pandemic to help the people overcome their financial hardship.
Ismail said the subsidy programme for bottled oil had cost the government RM55 million a month.
“However many quarters had abused this subsidy with smuggling activities. As such the government has decided to discontinue the subsidy for bottled cooking oil effective July 1 as the original objective of this subsidy was to help the people.
“But the subsidy for 1kg cooking oil in polybags will be continued and the government is confident that the subsidy for 60 metric tonnes (of oil) per month will be sufficient for the use of Malaysians.”
Yesterday Domestic Trade and Consumer Affairs Minister Alexander Nanta Linggi said palm oil cooking oil will no longer be subsidised come July 1.
This will apply to cooking oil sold in 2kg, 3kg and 5kg bottles, which currently have maximum retail prices capped at RM12.70, RM18.70 and RM29.70 respectively.
A free float for bottled palm oil cooking oil prices will affect the prices of oil sold in 2kg, 3kg and 5kg bottles. Subsidies will be maintained, however, for cooking oil sold in 1kg polybags at RM2.50 each.
Earlier today, Pakatan Harapan said Putrajaya must announce in 24 hours measures to help Malaysians cope with the rising cost of living, more so, as the prices of chicken and cooking oil are set to rise from July 1.
The opposition was ready to mobilise the people to express their dissatisfaction if the government fails to announce any measures, the coalition’s presidential council said in a statement.
“PH is ready to move the people and civil society groups to express their anger at the government’s failure,” said the statement, signed by PKR president Anwar Ibrahim, Amanah president Mohamad Sabu, DAP secretary-general Anthony Loke and Upko president Madius Tangau. – June 22, 2022.