02/01/2008 (NST Online), Georgetown - Checks on the supply of cooking oil have begun following complaints of reduced supplies from wholesalers and retailers.

State Domestic Trade and Consumer Affairs Committee chairman Lau Chiek Tuan said enforcement officers were checking the supply chain to find the problem.

He was responding to complaints from some wholesalers, retailers, mini-market operators and sundry shops that they had to ration cooking oil to one or two packets per customer per day.

"I have received reports that there is a severe shortage of cooking oil in Bukit Mertajam and Seberang Prai Utara.

"I have not received any complaints from other areas, but the department will check on the suppliers," he said yesterday.

He plans to meet with 16 cooking oil packagers in the state to resolve the matter.

He said if the packagers faced a supply problem, he would talk to the manufacturers and suppliers.

On claims that manufacturers have been reducing the production of cooking oil pending the payment of subsidies, Lau said it was not true.

In Bukit Mertajam, a packager has blamed the shortage on the rampant smuggling of cooking oil to Thailand.

The production manager, who did not want to be named, said: "A kilogramme of cooking oil in Thailand fetches RM3.50 to RM4, as opposed to RM2.50 in the local market."

He added that production was subjected to subsidies and his company had been fulfilling the quota.

But he pointed out that the demand had increased significantly in the past several weeks.

"Most of our customers have asked for more cooking oil, but we are restricted by the subsidy mechanism."

He said that there had been an influx of people from Kedah, where there was a serious shortage, looking to buy cooking oil.

"We have received many calls from shopowners in southern Kedah who wish to make bulk purchases.

"But we have to turn them down as we have an obligation to ensure adequate supplies for our regular customers here."