According to the Malaysian Palm Oil Council (MPOC) website, the price per metric ton of palm oil is approximately RM3,568. If the price of palm oil per metric ton continues to be below RM4,000, the price of edible oil will also be gradually reduced within 1 to 2 months.
It is understood that the price of cooking oil will be gradually reduced within 1 to 2 months and may be reduced by about 10%. The current price of 5kg bottle of cooking oil is about RM48, in the case of 10% price reduction will be a price reduction of about RM4 80 sen.
As the price of cooking oil is also not a sudden spike, so the price reduction will not be a direct price cut all at once. Generally on manufacturers will have inventory, manufacturers need to clear inventory before they can reduce the price of cooking oil. Manufacturers are also trading with palm oil futures and generally have placed orders 2 to 3 months in advance.
There are many factors that affect the price of edible oil, including packaging, bottles, shipping costs, cartons and labor costs. If the price of palm oil falls, but these costs do not fall, then the price of edible oil will not be reduced too much.
Earlier, the chairman of the Anti-Inflation Task Force, Tan Sri Annuar Musa, revealed that the edible oil industry agreed in principle to reduce the retail price of edible oil in phases.
