Why are 1kg and 2kg cooking oil bottles disappearing from Johor shelves?

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Shortage of 1kg and 2kg Cooking Oil Bottles in Johor Attributed to Production Profitability Issues

Consumers across Johor are experiencing significant difficulty in locating 1kg and 2kg bottles of locally produced cooking oil, with retailers reporting persistent stock shortages that began in January. This scarcity is primarily driven by record-high crude palm oil prices, which have rendered production at government-controlled prices unprofitable for factories, leading them to reduce output of these specific bottle sizes.
Production Profitability Under Price Controls

The core reason behind the disappearance of 1kg and 2kg cooking oil bottles lies in the economic disincentive for manufacturers. While global crude palm oil prices are projected to reach RM5,300 per tonne, exceeding previous highs of RM3,800 per tonne, factories are finding it increasingly unprofitable to sell cooking oil at the government-mandated prices for smaller bottles. This reluctance to produce at a loss has directly impacted the supply chain, with disruptions noted since January.
Supply Chain Disruptions and Reduced Retailer Stock

Retailers, including sundry shops and supermarkets throughout Johor, have confirmed a significant reduction in their usual supply of 1kg and 2kg cooking oil bottles. Some supermarket chains reported receiving only 25% of their typical inventory, with stock levels plummeting since December and worsening in January. This has resulted in widespread empty shelves for these popular consumer sizes, while larger formats like 3kg and 5kg bottles, though also experiencing limited supply, remain more consistently available at RM30.90 for the 5kg option.
Stable Supply of Subsidised Packets Amidst Panic Buying

In contrast to the bottled oil shortage, the supply of subsidised cooking oil packets, priced at RM2.50, remains stable. However, even these packets are experiencing rapid depletion due to unexpectedly surging demand and instances of panic buying. Retailers are struggling to replenish stock quickly enough to meet this heightened demand, despite having a consistent monthly supply.
Government Awareness and Engagement on Solutions

The Johor state government is aware of the cooking oil shortage and its underlying causes. The Mentri Besar, Datuk Onn Hafiz Ghazi, has been briefed on the situation. Consequently, the state government intends to engage with the Domestic Trade and Cost of Living Ministry to explore and implement potential solutions to alleviate the scarcity of 1kg and 2kg cooking oil bottles.

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Why are 1kg and 2kg cooking oil bottles disappearing from Johor shelves?

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