PUTRAJAYA, June 23 – The Government still maintains the Cooking Oil subsidy, with a total of RM4 Billion for 2022 compared to RM500 million in 2020 and RM2.2 billion in 2021. Cooking oil subsidized by the Government is 60 thousand metric tonnes per month, exceeding the actual needs of consumers which is 55 thousand metric tonnes per month said Prime Minister YAB Ismail Sabri.

The subsidy borne by the Government is for the cooking oil category of RM2.50 per kilogram (kg) only, compared to the actual market price, RM9.00 per kg for the use of B40 Malaysian. This subsidy has started since June 2007. During the COVID-19 Pandemic, the Government introduced a temporary subsidy program for Bottled Cooking Oil of 1 KG, 2 KG, 3 KG and 5 KG, in August 2021.

This effort was to help Malaysian families who were then affected by the COVID-19 pandemic. The temporary subsidy program for bottled cooking oil is only for a period of three months at a cost of RM55 million per month. However, the Government found that subsidized bottled cooking oil was heavily misappropriated by industrial, commercial and smuggling activities.

In this regard, the Government has decided from 1 July 2022 to no longer extend subsidies for bottled cooking oil as the initial objective of this program is to help those affected by the pandemic. For that, only the Packet Cooking Oil Subsidy will be continued and the Government is confident that the subsidy of 60 thousand metric tonnes per month is sufficient for the use of Malaysian families.