18/12/2008 (Bernama) - Domestic Trade and Consumer Affairs Minister Datuk Shahrir Abdul Samad said today the price of cooking oil was dependent on the price of palm oil in the international market, and that it could drop if the palm oil price fell below RM1,500 a tonne.

He said the price of cooking oil was RM2.50 a kg now based on the palm oil price of between RM1,600 and RM1,700 a tonne.

"Although the palm oil price in the world market has risen, we have been able to retain the price of cooking oil at RM2.50 due to government subsidy," he told reporters after he launched the Fair Price Shop awards, here.

He said the subsidy for cooking oil this year was expected to be about RM1 billion.

Shahrir said the government would not have to provide a subsidy for cooking oil if the price of palm oil dropped below RM1,500 a tonne.