Why are cooking oil prices being maintained despite rising CPO costs?

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Cooking Oil Prices Held Steady Amidst Crude Palm Oil Cost Increases

Retail prices for cooking oil will remain unchanged from December 8, 2022, to January 7, 2023. This decision was reached through an agreement with the cooking oil industry, which consented to maintain the existing ceiling prices for December, mirroring the previous month's rates. This commitment was made even though the average price of Crude Palm Oil (CPO) saw an increase in November compared to October.
Industry Cooperation Secures Price Stability

The sustained retail prices are attributed to the voluntary cooperation of the cooking oil industry. These industry players agreed to retain the ceiling prices for December 2022, aligning with the pricing structure in place during November. This collective decision aims to provide a period of price stability for consumers.
Unchanged Retail Price Points

Specific retail price points will be maintained for various packaging sizes. A 1kg pack of cooking oil will continue to be sold at RM6.90. Larger sizes will also remain at their current prices: RM13.30 for a 2kg pack, RM19.60 for a 3kg pack, and RM30.90 for a 5kg pack. These prices represent the established ceiling for this period.
Legal Framework for Price Control

The Domestic Trade and Consumer Affairs Ministry (KPDNHEP) has the authority to take action under the Price Control and Anti-profiteering Act 2011 against any party selling cooking oil above the set ceiling prices. Individuals found violating these regulations could face penalties including fines of up to RM100,000, imprisonment for three years or more, or both. Companies convicted of such offences are liable to fines of up to RM500,000.

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Why are cooking oil prices being maintained despite rising CPO costs?

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