Food prices may soon climb even higher if reports that the government will get rid of subsidy for cooking oil are true, the Federation of Malaysian Consumer Associations (Fomca) warns.

However, its deputy president Mohd Yusof Abdul Rahman hoped the Ministry of Domestic Trade, Cooperatives and Consumer Affairs would monitor food prices to prevent profiteering.

"We expect a food price hike, we hope that the ministry will take action as per the Anti-Profiteering Act, if traders use the opportunity to increase prices indiscriminately," he told Malaysiakini.

Before this, Chinese newspaper Oriental Daily reported that the Malayan Cooking Oil Producers Association said the prices of several categories of cooking oil would increase next month, after the government announced a cut in cooking oil subsidy for Budget 2017.

The categories of cooking oil reportedly affected are the 500g, 1kg, 2kg, 3kg and 5kg mixed oil products as well as the 500g, 1kg, 2kg, and 3kg pure palm oil products.

The report also stated that the 5kg pure palm oil products would continue to be sudsidised until next year.

The report further added that the price of a 1kg packet of cooking oil would increase from RM2.50 to RM2.90 next month, while a bottle of 5kg pure palm oil would increase from RM13.35 to RM15.25 come January 2017.

Prices already high

Meanwhile, Persatuan Pengguna Islam Malaysia (PPIM) chief Nadzim Johan said that the prices of food in the country were already high, even without the alleged cooking oil subsidy cut.

"Even without the rise in cooking oil prices, food prices are still high, there is not much that can be done," he said.

"We are amongst those who urged the government to retract the subsidy as we see that there are many who abuse it, and now we want the government to take steps to ensure that only those in need, get it.

He suggested that in place of the general subsidy, the government should introduce new measures like cooking oil subsidy cards, to provide targeted subsidies for those who need it.

"If those who are in need want to buy cooking oil, show the card and they will get subsided, this means that the subsidy will get to those who need it," Nadzim said.

Putrajaya had embarked on an aggressive subsidy rationalisation plan since Prime Minister Najib Abdul Razak took came into power in early 2009.

Since then, the government had rationalised oil subsidy, increased toll rates and abolished sugar subsidy.

Speculation have since been rife that the government is looking to do away with the RM950 million cooking oil price stabilisation scheme channeled through the Ministry of Plantation Industries and Commodities.