Govt to rationalise distribution of subsidised cooking oil

The domestic trade and cost of living ministry will initiate a rationalisation process in the allocation of subsidised cooking oil or quota for cooking oil to overcome any future shortages in the market.

Domestic Trade and Cost of Living Minister Salahuddin Ayub said this was important to ensure the fair allocation of subsidised cooking oil at all levels.

He said his ministry was taking proactive measures following feedback received from a series of visits to companies involved in repackaging subsidised cooking oil throughout the country.

"I feel that the time has come for the ministry to look at the overall process of distributing packet subsidised cooking oil so that there will not be any disruptions or shortages at any level in the future," he told reporters in Kota Kinabalu yesterday.

Salahuddin said his ministry was carrying out an overall study or audit to ensure that the factories involved in repackaging subsidised cooking oil had the capability and capacity to supply the product, whether in rural areas or cities.
 
"After conducting an audit, the allocation and distribution of subsidised cooking oil will be done fairly. We will manage and supervise the distribution or quota of subsidised cooking oil.

"In areas that need additional supply or quota, we will increase so that shortages can be resolved," he said.

Salahuddin said that Sabah was also experiencing a shortage of factories repackaging subsidised cooking oil, which was among the reasons for the shortage of supply in the market.

He added that the ministry was committed to overcoming the issue by adopting a fair distribution process in the allocation of subsidised cooking oil at all levels.

"There are very few factories involved in repackaging subsidised cooking oil in Kota Kinabalu, for example. If we were to transport supplies from Sandakan to Kota Kinabalu, the transportation cost would be high and it would take a long time.

"Therefore, it is important to ensure a fair distribution. We will overcome the issue as soon as possible," he said.