Agencies told to find mechanism that can reduce cooking oil price

 

The Jihad Against Inflation Special Task Force has instructed agencies involved to find a mechanism to reduce the retail price of cooking oil following the decline in crude palm oil prices.

Task force chairperson Annuar Musa said the agencies, including the Malaysian Palm Oil Board, were instructed to hold engagement sessions with 22 palm oil producers in search of the mechanism.

“We find a downward trend in palm oil price at RM3,800 per barrel. If it drops to RM3,750, we will seek their cooperation and ask for a reduction in the retail price (palm cooking oil).

"It is not fair to raise prices on the grounds that oil prices were increasing recently but when prices fall, the retail price did not drop,” he told a press conference after chairing the task force meeting today.

Annuar said the special task force would monitor the actual palm oil price and when the rate dropped below the threshold value, manufacturers and retailers should give their commitment to lower the price of cooking oil being sold.

The communications and multimedia minister also sought the cooperation of manufacturers and retailers to prepare to reduce the retail price of cooking oil.

Stop leakage

He also urged cooking oil manufacturers to comply fully with all the conditions imposed by the Domestic Trade and Consumer Affairs Ministry to prevent the leakage of cooking oil supplies.

The task force, Annuar said, would ensure that firm and continuous actions are taken against those found involved in the leakage of subsidised cooking oil supply which had been rampant in the past.

"We have evidence that there had been widespread leakage before, including export of subsidised oil for sale abroad, the oil being used by the non-domestic sector, and so forth," he added.

As such, Annuar said the integrated operation would be intensified to prevent supplies of cooking oil from being smuggled into foreign countries, including close monitoring of the country's borders by the armed forces and the general operations force.

In the past six months, he said the authorities had confiscated RM1.5 million in value involving 61 cases.

He assured that the special task force would continue to gather detailed information if manufacturers are still found to be involved in the smuggling and selling of subsidised cooking oil for other purposes.

- Bernama