Higher palm oil prices mean costlier cooking oil, says minister

PUTRAJAYA: The rising price of crude palm oil (CPO) globally may be a blessing for the nation’s economy but the downside to it is that it will lead to higher non-subsidised cooking oil prices.

Domestic trade and consumer affairs minister Alexander Nanta Linggi said the current higher price of cooking oil was influenced by the steadily rising CPO prices since August last year.

He said it rose above RM3,000 per tonne in December last year, which led to the ministry receiving many complaints on the increase in the price of non-subsidised cooking oil.

“The price depends on the price of CPO, which in turn is determined by demand and supply,” he said.

This puts pressure on the local market, except for the price of government-subsidised 1kg cooking oil polybags sold at RM2.50, he said in a statement today.

Nanta was commenting on cooking oil prices which have shown an increase during the movement control order (MCO).

Nanta said since June last year, the Malaysian Palm Oil Board had reported that the price of crude palm oil prices in the world market had increased every month.

He said production prices increased due to several factors, including the higher international demand for crude and processed palm oil.

“Other factors are the increase in the price of other cooking oils in the international market, which has made palm oil an option compared to soybean and rape seed oil. Climate change has also affected palm oil production,” he said.

FMT

Tags: palm oil price