KANGAR: To bolster transparency in targeted subsidies and curb potential misuse, the Domestic Trade and Consumer Affairs Ministry is studying the option of raising the retail price of subsidised cooking oil.
Its deputy minister, Fuziah Salleh, said such a move might deter attempts to repackage subsidised cooking oil to be resold as used cooking oil.
Fuziah emphasised the ongoing assessment of various aspects before implementing this mechanism.
This underscores the need for meticulous planning to guarantee that the subsidy effectively reaches the designated B40 and some M40 households, she added.
"The current monthly production quota of 60,000 metric tons of subsidised cooking oil is deemed sufficient to cater to the needs of 5.8 million eligible households," she said at the launch of Rahmah sales at a hypermarket today.
Highlighting the potential challenges, Fuziah noted that while an average household requires around 4.8 kilogrammes of cooking oil, micro-businesses like fried banana sellers and keropok lekor vendors may consume approximately 400 packages per month.
"Previously, they used the cooking oil for several frying cycles, but since the recycled cooking oil now fetches the price of between RM3 and RM3.80 (per kg), they are selling the used cooking oil without using it multiple times.
"Perhaps this results in the market shortage of subsidised cooking oil and causing subsidy leakages.
"Hence, increasing the price (of subsidised cooking oil) will help ensure that the targeted subsidies truly benefit the target groups."
Fuziah also said the ministry is conducting a nationwide audit on the usage of subsidised cooking oil.
Expected to conclude in the first quarter of the upcoming year, she said the audit would pave the way for recommendations and further actions to address the challenges and enhance the effectiveness of the subsidy programme.