07/01/2008 (The Economic Times), Kuala Lumpur - Malaysia will not have to ration cooking oil, because it is increasing the supply of subsidised cooking oil to help replenish depleted stocks, Prime Minister Abdullah Ahmad Badawi said on Monday. "The meeting found that there was no shortage of cooking oil supply in the country," Abdullah said in a statement.

"However, there is a shortage of subsidised cooking oil in the market due to increase in demand following various festivals that were close to one another recently." Abdullah, who chaired a special meeting called to solve the cooking oil shortage, said that with the higher quota, the supply of subsidised oil would return to normal in the next few days.

Beginning on Monday, Malaysia had limited the amount of cooking oil consumers can purchase to 5 kg (11 lbs) to overcome the shortage, which authorities had blamed on hoarding and panic buying caused by rumours of an impending price hike. Abdullas said the situation was worsened by smuggling of cooking oil into neighbouring countries, hoarding and industries using subsidised cooking oil though they are not permitted to do so.

The government would take tough action against those caught smuggling or hoarding, he added. The shortage comes at a time of growing price pressures, with food and transport prices on the rise and a likely increase in fuel prices in coming months.