Kuala Lumpur: The government’s immediate intervention is deemed crucial to ensure a sufficient supply of bottled palm cooking oil for the population over the next three months. Domestic Trade and Cost of Living Minister Datuk Armizan Mohd Ali disclosed that certain companies have reduced their cooking oil production by 50 percent due to rising global crude palm oil (CPO) prices, resulting in a supply shortage.
According to BERNAMA News Agency, the intervention is vital to maintaining an adequate cooking oil supply during key festive periods such as Ramadan, Hari Raya Aidilfitri, the Kaamatan Festival, and Gawai within the upcoming three months. Armizan emphasized the need for a short-term intervention through special incentives while also stressing the importance of devising a long-term solution in collaboration with all parties involved.
Armizan mentioned this during a session with reporters after officiating the Servis Ihsan MADANI@Petronas Autoexpert (Sim@Pax) Hari Raya Aidilfitri and Ikhlas Ramadan Bersama Gas Petronas Programme. He revealed that the government had already decided on immediate intervention measures to stabilize the market supply following a briefing to Prime Minister Datuk Seri Anwar Ibrahim and Finance Minister II Datuk Seri Amir Hamzah Azizan.
In the first two months of 2025, the average CPO price was reported to be RM4,672.50 per tonne in January and RM4,759 in February. This prolonged high pricing has compelled bottled cooking oil packaging companies to reduce production in efforts to control costs under the maximum price control order.
Armizan further stated that during the three-month period, Prime Minister Anwar instructed various ministries, including the Ministry of Domestic Trade and Cost of Living, the Ministry of Finance, and the Ministry of Plantations and Commodities, to work towards a sustainable solution. He reiterated the government’s commitment to subsidizing packet cooking oil and capping bottled cooking oil prices to assist the populace, while acknowledging industry constraints and seeking balanced solutions.
The Ministry of Domestic Trade and Cost of Living had already initiated contact with the relevant companies and planned a meeting early next week to implement the intervention. Armizan expressed optimism, as companies had begun restoring production levels to normal following the government’s commitment to the intervention. The mechanism is expected to be formalized and the agreement signed by Monday or Tuesday.