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Government removing subsidies for cooking oil

Oct 20, 2016

The government is removing subsidies for cooking oil in both bottle and bag form, effectively raising prices for the first time in 10 years.

By 1st November, only the 5kg bottles and 1kg bags of oil will remain subsidised, while prices for the 5kg bottles will rise as well by 1st January.

The retail ceiling price for the 1kg polybag will be raised by 40 sen to 2 ringgit 90 sen, while 5kg bottle will go up by 1 ringgit and 90 sen to cost 15 ringgit 25 sen.

Fomca expects prices of food to go up soon as traders are likely to pass the added expenses to consumers.

Meanwhile, the Domestic Trade, Cooperative and Consumerism Ministry has warned that wholesalers and suppliers found hoarding cooking oil will have their licences revoked.

Photo credit: The Star