Will palm oil traders hoard cooking oil despite price caps?

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Palm Oil Traders Urged to Avoid Hoarding Despite New Price Caps

Tan Sri Annuar Musa, chairman of the Task Force on Jihad against Inflation, has cautioned palm oil traders and retailers against hoarding or rationing palm-based cooking oil, even with the introduction of a maximum price. The new price cap, set at RM34.70 for a five-kilogramme bottle of palm-based cooking oil, is effective from August 8. Annuar Musa emphasised that such hoarding practices would not resolve supply issues and would ultimately result in losses for traders and retailers.
Warning Against Hoarding Practices

Annuar Musa explicitly stated that hoarding the commodity would not be a solution to any perceived problems and would instead create difficulties for consumers. He advised that engaging in such activities would ultimately disadvantage those involved. The task force chairman stressed the importance of adhering to the government's directives regarding maximum pricing for essential goods.
Rationale for Price Controls

The government has established a ceiling price for unsubsidised pure palm-based cooking oil at RM34.70 per five-kilogramme bottle, with this price to be reviewed and announced monthly by the Malaysian Palm Oil Board (MPOB). This measure aims to ensure a stable and accessible supply of cooking oil for the public. Annuar Musa's comments suggest a proactive stance to prevent artificial shortages that could arise from speculative hoarding.
Evidence of Price Reductions

Even before the official implementation of the price cap on August 8, some supermarkets had reportedly begun lowering the prices of unsubsidised bottled cooking oil. Annuar Musa noted this positive response, highlighting instances such as chicken being sold in Melaka at RM7.99 per kilogramme, which is below the established ceiling price of RM9.40. This indicates a willingness among some retailers to adjust prices in anticipation of or response to government regulations.

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Will palm oil traders hoard cooking oil despite price caps?

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