Govt considers incentives to stabilise bottled cooking oil supply

8 March 2025

PUTRAJAYA: The Ministry of Domestic Trade and Cost of Living (KPDN) is considering special incentives to companies to stabilise the supply of bottled cooking oil in the market.

This decision follows a special briefing on bottled cooking oil supply disruptions, presented to Prime Minister Datuk Seri Anwar Ibrahim on Friday.

Its minister Datuk Armizan Mohd Ali stated that the measure is part of immediate intervention to stabilise the supply of the commodity.

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

According to Armizan, one of the main causes of the supply disruption is the rising production costs due to the surge in global crude palm oil (CPO) prices over the past two years.

"In the first two months of 2025, the average price of CPO stood at RM4,672.50 in January and RM4,759 in February."

"As a result of prolonged high CPO prices, bottled cooking oil packaging companies have had to reduce production to control costs, as they are bound by the maximum price control order."

"For instance, five-kilogram bottled cooking oil must be sold at a retail price of RM30.90, compared to the global CPO price-based market rate of RM36.16," he said in a statement on Friday.

Meanwhile, Armizan added that KPDN is also intensifying enforcement efforts to prevent hoarding and misappropriation of all types of cooking oil.

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.