I urge the Cabinet to address the issue of price hike for cooking oil in the Wednesday’s Cabinet meeting.
Indonesia has announced the exports of cooking oil and Crude Palm Oil (CPO) would be suspended staring April 28, 2022 in a bid to stabilise prices in Indonesia. As Indonesia is the world largest palm oil producing country, this decision would further trigger the soaring of prices of cooking oil in the world market. Although Malaysia is the world second largest palm oil producing country, Malaysia will stand to benefit from this decision as the CPO price will have a sudden surge and the Government of Malaysia will collect more revenues in terms of windfall profit levy and export levy.
However, the consumers in Malaysia will have to face up to the reality that prices for cooking oil will increase. This is already happening since the CPO International price reaching new height in recent months.
Tehe Cabinet must beef up the Cooking Oil Subsidy Program (COSS) as the Indonesia’s latest decision has grave impact to the prices of cooking oil in Malaysia market. There have been recent reports on the shortage of government subsidized cooking oil in the form of 1kg polybag. There are also misappropriation, leakages, smuggling activities on the subsidized cookin oil.
The Cabinet must utilises effectively windfall profit levy and various taxes as well as levies contributed by the Palm Oil indusries to relieve the burden of the consumers. The Government must also address the issues arises on the Cooking Oil Subsidy Program and to ensure the supply of cooking oil is adequate and the prices are stable and affordable to the Malaysian public.