The supply of one kilogramme packets of cooking oil is back to normal again after oil re-packers have promised to provide adequate supply.

Deputy Domestic Trade and Consumer Affairs Deputy Minister S Veerasingam told malaysiakini that the re-packers have agreed to supply the small packets after being assured a government subsidy to cover their shortfall in oil prices.

"After discussions with the Agriculture and Agro-Based Industry Ministry and oil re-packers, the government has agreed to give them a subsidy for five months," he said.

"The first payment will be made after May 18," he added.

Several states faced cooking oil shortages because these re-packers would not produce small one kilogramme packets of oil used by households, claiming there was little profit to be made due to higher palm oil and transportation costs.

Crude palm oil has risen some 50 percent since October last year to RM2,200 per tonne and reports said cooking oil manufacturers were suffering losses because of government-imposed ceiling prices.

Cooking oil based on palm oil is a price-controlled item in Malaysia, selling at RM2.50 per kilogramme.

What supply?

However, despite the minister's assurance that the supply was back to normal, a random check by malaysiakini with 10 retailers in Brickfields and Bangsar areas revealed otherwise.

"It is really difficult in not having the goods. A lot of my customers have turned away," said Nuzul Azmi, 22, a grocery-shop owner in Flat Sri Pahang, Bangsar.

"We have not been selling (1kg packetsl) for almost one month. The supplier has no stock" added another Lee Keng Lay, 46, a manager at Pasaraya Sri Kota in Brickfields.

Manager of New Maliga Enterprise, Hidayeat Syed Kathi, 27 stated that there has been a shortage for about 15 to 20 days.

"If I have the stock, I will just sell," he said.

Over the ceiling price

Interviews with food stall owners around Bangsar and Brickfields painted a different picture.

They claimed that there was an adequate supply of 1kg oil available from the Chow Kit Market, in Pantai Dalam and Gombak. However they are sold above the ceiling price of RM2.50.

"It is sold at RM3.10 at Chow Kit market," said Rina Mardiana Ali, 29.

She added that even though the price of oil has increased, the price of her cakes are still the same and that the government should help small-time business people.

Amir Wahab, 62, said that the price of cooking oil sold at Pantai Dalam was around RM2.70 to RM3.00.

"I am disappointed. The government doesn't seem to be concerned," he added.

Ku Hanisah Tuan Ismail said that she managed to buy 1kg oil in Gombak yesterday.

"I bought it at RM3.00" she said.

In a bid to overcome the shortage, the Plantation Industries and Commodities Ministry earlier this week announced a temporary subsidy for cooking oil manufacturers and packers.

Under the plan, which will run to May 2008, palm oil plantations will pay a form of tax totalling some RM661.2 million which will be paid as compensation to cooking oil manufacturers and packers.