PAPAR, March 8 — The government’s immediate intervention is crucial to ensure a sufficient supply of bottled palm cooking oil for the people over the next three months.
Domestic Trade and Cost of Living Minister Datuk Armizan Mohd Ali said this was due to some companies reducing cooking oil production by 50 per cent in response to rising global crude palm oil (CPO) prices, which had led to a supply shortage.
The intervention is also essential to ensuring an adequate cooking oil supply for the people during Ramadan, Hari Raya Aidilfitri, the Kaamatan Festival, and Gawai within the three-month period.
“This is an immediate short-term intervention, implemented through special incentives, but we also need to think about a long-term (solution).
"We will discuss with all parties involved how to address this issue in the long run,” he said.
Armizan was speaking to the press after officiating the Servis Ihsan Madani@Petronas Autoexpert (Sim@Pax) Hari Raya Aidilfitri and Ikhlas Ramadan Bersama Gas Petronas programme today.
Yesterday, he said that the government will implement immediate intervention measures to stabilise the supply of bottled cooking oil in the market.
The decision was made following a special briefing to Prime Minister Datuk Seri Anwar Ibrahim and Finance Minister II Datuk Seri Amir Hamzah Azizan on the ongoing supply disruption.
The minister added that the average CPO price stood at RM4,672.50 (per tonne) 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 were bound by the maximum price control order.
During the three-month period, Anwar had also instructed the Domestic Trade and Cost of Living Ministry (KPDN), the Finance Ministry, the Plantations and Commodities Ministry, and all relevant parties to find a long-term solution to the issue.
“The price of CPO has increased, but the government remains committed to subsidising packet cooking oil and capping the price of bottled cooking oil to assist the people.
"At the same time, we acknowledge the constraints faced by companies and are working on solutions to balance the needs of both the people and the industry,” Armizan said.
KPDN has contacted the companies involved and would hold a meeting with them early next week to implement the intervention.
“We will formalise this mechanism next week and sign the agreement on Monday (March 10) or Tuesday (March 11).
"Alhamdulillah, the companies involved have already begun restoring production to normal levels following the commitment (intervention) we have conveyed,” he said.
— Bernama
