Heads up, Malaysians!
The Star has confirmed that the subsidies for all cooking oil packages, except for the 1kg polybag and 5kg bottle, will be removed starting 1st November. This marks the first price increase of cooking oil in 10 years.
In a statement, the Malayan Edible Oil Manufacturers’ Association said, “All retail prices of blended cooking oil in various packing sizes will also no longer be subsidised”.
The also added that this was in line with Restructuring of Cooking Oil Price Stabilisation Scheme (COSS) implemented by the Government in June 2007 due to the high price of palm oil back then.
For a better understanding of the COSS, refer to the chart below:
Food prices are also expected to increase, as Yaw Boon Choon, president of the Federation of Malaysian Hawkers Association, said that the removal of subsidy for cooking oil would affect food traders.
However, Fomca deputy president Mohd Yusof Abdul Rahman promised, “The Government needs to ensure that traders will not increase prices by too much”.
The retail ceiling price for the 1kg polybag revised upwards from RM2.50 to RM2.90 while the 5kg bottle will increase from RM13.35 to RM15.25. But the subsidy for the 5kg bottle will be removed next year and shall be sold at open market price in the retail market.
What do you think about the subsidy removal? Let us know your thoughts in the comments below!
Sources: The Star, Malaysian Digest, The Sun.
