14/02/2011 (BorneoPost Online) - Plantation Industries and Commodities Minister Tan Sri Bernard Dompok yesterday confirmed that the government has no plans to reduce the cooking oil subsidy although it is costly.

“Although the government is paying very hefty subsidy, it has no plans to reduce the cooking oil subsidy,” he told a press conference after launching the Senior Citizen Appreciation and Pesta Angpou organized by Penduduk Rumah Murah Kepayan Association at the Grand Port View here yesterday.

While pointing out that a reduction in the subsidy would result in an increase in the price of cooking oil, he said cooking oil in the country which is priced at RM2.50 per kg  is nevertheless cheaper than those in the neighbouring countries such as Thailand, where it costs RM4 per kg.

Dompok said when the price of crude palm oil (CPO) is maintained at the present level, the government would have to spent about RM1.8 billion a year on cooking oil subsidy.

“At the moment, we are talking about more than RM2 per kg in subsidy for cooking oil and in the whole country the government has set a quota of more than 70,000 tons a month, that is the level of subsidy the government is paying for cooking oil.

“We are also concerned about how cooking oil is utilised, as it is meant for household, but at the moment there is a lot of leakage, in that it is used by industries. I am told there is a certain amount that is being sold to the neighbouring countries,” he said.

The government would try to find a way to overcome the problem, he added.

“The Domestic Trade, Cooperative and Consumerism Ministry is the one which has to plug the leakages. As for my ministry, we will only look at the production but the other ministry will have to plug the leakages,” he said

On the programme, he said the celebration of Chinese New Year among the multi-racial people in the state reflects the 1Malaysia concept.