Supply of subsidised cooking oil not affected despite suspension of 24 repackers - Rosol

SHAH ALAM, July 5 (Bernama) -- The supply of subsidised cooking oil packets in the market has not been affected despite the suspension and revocation of licences involving 24 cooking oil repackers due to misappropriation offences since last year said the Ministry of Domestic Trade and Consumer Affairs (KPDNHEP) deputy minister Datuk Rosol Wahid.

He said the production quota of the suspended companies had been given to other companies.

"This is to ensure that the supply of 60,000 metric tonnes of cooking oil is not reduced and sufficient nationwide," he told reporters after conducting audit and whitening inspections on premises involved in packing subsided cooking oil here today.

Meanwhile, he said the smuggling and misappropriation of subsidised cooking oil packets were detected not only involving companies located at the country's borders, but also premises in the Klang Valley and Perak.

"This is so sad and should not happen because the subsidies that are provided by the government to the people in this country are being enjoyed by people in other countries," he said.

Rosol said the significant gap in the price of subsidised cooking oil which is sold at RM2.50 per kilogramme (kg) compared to the current price of palm cooking oil at RM8 per kg is one of the reasons for the high demand for subsidised cooking oil. 

He said KPDNHEP was aggressively carrying out enforcement activities throughout the country to monitor, inspect and audit all repackaging premises as well as wholesalers to tackle the issue of misappropriation and smuggling of subsidised cooking oil.

Meanwhile, KPDNHEP Kuala Lumpur director Ariffin Samsudin said the cooking oil shortage that happens on the first day of every month was due to the new quota prescribed to the repackaging companies.

"Every first day of the month, manufacturers will send cooking oil stocks to the repackers based on the new month's quota ... then, the repacker outlets will pack the cooking oil based on the quota, as they move towards the end of the month, the lower is the remaining quota.

"That's why at the end of the month and the beginning of the month there is a slight shortage of supply," he said after conducting an audit and whitening inspection at a company in Bandar Tun Razak, Kuala Lumpur.

-- BERNAMA