Govt may give incentives to beat bottled cooking oil shortage

 

The ministry of domestic trade and cost of living said cooking oil packaging companies will be instructed to raise production to meet demand.

PUTRAJAYA: 

Incentives are being considered for bottlers of cooking oil as part of measures to stabilise supplies in view of a shortage of bottled cooking oil, said domestic trade and cost of living minister Armizan Mohd Ali.

He said the decision was made following a special briefing for Prime Minister Anwar Ibrahim and finance minister II Amir Hamzah Azizan this morning, Bernama reported.

Armizan Mohd Ali.

He said the ministry had been directed to instruct cooking oil packaging companies to restore sufficient production levels to meet demand.

Enforcement efforts would be stepped up to prevent hoarding or misappropriation of cooking oil, he said.

Armizan expressed the ministry’s appreciation for the prompt decision of the prime minister and the finance ministry in considering the allocation for the special incentive.

He said one of the main causes of the shortage was because global crude palm oil prices have increased over the past two years, leading to higher production costs.

“Bottled cooking oil packaging companies have had to reduce production to control costs, as they are bound by price controls,” Armizan said in a statement today.

He said the retail price for a 5kg bottle of cooking oil is capped at RM30, below a market price of RM36.16 based on the global crude palm oil rate. -FMT