Prices of several categories of cooking oil will increase next month, said the Malayan Edible Oil Manufacturers' Association.

This was according to a report by Oriental Daily, which stated that it was the result of the impending removal of cooking oil subsidies.

Affected cooking oil categories include the 500g, 1kg, 2kg, 3kg and 5kg mixed oil products as well as the 500g, 1kg, 2kg and 3kg pure palm oil products.

The 5kg bottled pure palm oil will continue to be subsidised until next year, according to the report.

The report states that a one kilogram bag of cooking oil is expected to rise from RM2.50 to RM2.90 by next month, while a 5kg bottle of pure palm oil will increase from RM13.35 to RM15.25 by January 2017.

Further details are expected to be announced during Prime Minister Najib Abdul Razak's Budget 2017 speech this Friday.

The Oriental Daily report also claimed that many food traders are stocking up on cooking oil ahead of Budget 2017.

Putrajaya has embarked on an aggressive "subsidy rationalisation plan" since Prime Minister Najib Abdul Razak took reigns in early 2009.

Following this, Putrajaya had reduced subsidies for oil, highway toll charges and completely removed sugar subsidies. 

News emerged last year that Putrajaya was looking to defund the Plantation Industries and Commodities Ministry's RM950 million cooking oil price stabilisation scheme.

Warning on hoarding

Meanwhile, Bernama reports that wholesalers and suppliers found hoarding cooking oil supplies would have their business licence revoked, said Domestic Trade, Cooperatives and Consumerism Minister Hamzah Zainuddin.

He also urged retailers to lodge a report if they found their cooking oil delivery quota to be less than what it should.

Hamzah said such reports were essential to enable the ministry to conduct investigations into the possibility of wholesalers and suppliers hoarding cooking oil supplies.

“Whatever we are doing is for the people’s interest, to ensure that supplies are sufficient and so far, the price of cooking oil is still reasonable at RM2.50 per kg.

“The subsidy (for cooking oil) is still there and it is unfair for the people if anyone is hoarding the supply,” he told reporters after observing the implementation of the price control scheme in conjunction with the upcoming Deepavali celebration in Tapah today.

Hamzah was commenting on the alleged increase of cooking oil price due to the withdrawal of its subsidy beginning November 2016 which has gone viral on the social media.

He said at the moment, the ministry had not received any official complaint regarding the matter and it would send an enforcement team to immediately investigate upon receiving any report.

According to Hamzah, wholesalers and suppliers found hoarding cooking oil supplies could be charged under the Control of Supplies Act 1961, which carries a fine of RM100,000 for an individual and RM250,000 for a company.

He said currently, there were 260 cooking oil wholesalers and suppliers in the country.