Govt to study if subsidised cooking oil sold as used oil

Fuziah Salleh says her ministry is conducting an audit on the production and supply chain of subsidised cooking oil nationwide.

KANGAR: The domestic trade and cost of living ministry is studying the possibility of subsidised cooking oil packets being sold by certain parties as used cooking oil, causing supply disruption in the market.

Its deputy minister, Fuziah Salleh, said there is room for irregularities when subsidised cooking oil packets are now sold at RM2.50 per kg, while the price of used cooking oil can reach up to RM3.80 per kg.

She said the government allocates a total of 60,000 metric tonnes of subsidised cooking oil every month, and it should be enough to cover the needs of 5.8 million households, mainly comprising the B40 group.

“Household needs are usually only 4.8kg per month. However, micro traders use a lot (of cooking oil), approximately 400 packets per month. They include school canteen operators, cafe traders and various types of hawkers.

“In the past, they (micro traders) might use the same cooking oil again and again. However, because used cooking oil can fetch up to RM3.80 per kg today, these traders do not need to recycle it many times but instead sell it (as used oil),” she said at a press conference after officiating the Jualan Rahmah Berganda here today.

She was asked to comment on the leak related to subsidised cooking oil, following the ministry’s proposal to increase the price of the item.

Fuziah Salleh.

Fuziah said her ministry had so far not received any complaints regarding subsidised cooking oil packets being sold as used cooking oil.

She said the proposal to raise the price of the product is part of a measure to target subsidies to the needy, in addition to ensuring that it is not easily sold as used cooking oil.

She also said the ministry is conducting an audit on the entire production and supply chain of subsidised cooking oil nationwide to detect any leakage.

“The audit will be completed in the first quarter of next year, and  there will be recommendations regarding the next course of action. This audit is related to various matters, including issues of integrity related to the cooking oil supply chain.

“We have a Cooking Oil Price Stabilisation System (eCOSS) in place, where the system can monitor the movement of the oil from the refinery to packaging companies, to the wholesalers and retailers,” she said. - FMT