PUTRAJAYA: Cooking oil, except for those sold in the 1kg polybag, will no longer be subsidised starting from next month.
Domestic Trade, Cooperatives and Consumerism (KPNKK) Minister Datuk Seri Hamzah Zainudin, announcing this today, said the 1kg polybag will remain at the subsidised price of RM2.50.
"The rest (bottled cooking oil) will be sold at open market prices," he told reporters at a special press conference today.
He said the decision was made under the structure of the Cooking Oil Price Stabilisation Scheme (COSS), which is about to change from next month onwards as part of the government's subsidy rationalisation plan.
Hamzah said the move was necessary because without the rationalisation move, it would force the government to fork out RM100 million more for cooking oil subsidy each month for November and December.
On Sept 21, the Cabinet agreed that the KPDNKK would take over the COSS from from the Plantation Industries and Commodities Ministry (MPIC).
Hamzah said the ministry had also seized cooking oil worth about RM5,000 in three separate raids carried out in Selangor, Federal Territory and Penang under its anti-hoarding operation yesterday (Oct 25).