COOKING OIL SUBSIDY

• the subsidy introduced since 1995.
• cooking oil sold in sachets at RM2.50 per kg and in plastic bottled at RM3.50 per kg.
• cooking oil subsidy increased from RM26mil in 1995 to RM1.3bil in 2009.
• cooking oil price is capped at RM1,700 per tonne or RM1.70 per kg through subsidies. The current market price is about RM2,700 per tonne. To maintain RM1,700 'subsidised price' , a subsidy of RM1,000 is needed.
• average domestic consumption for cooking oil is 40,000 to 50,000 tonnes per month.
• should the subsidised cooking oil is left to open market and only subsidised for the needy (urban and rural poor), it may cost only RM40mil annually.

Source - Hanim Adnan / StarBiz / MY Palm Oil