Structure of Cooking Oil Price Stabilisation Scheme (COSS) to change from Nov

PETALING JAYA: The structure of the Cooking Oil Price Stabilisation Scheme (COSS) is about to change from next month as part of government subsidy rationalisation plan, The Malayan Edible Oil Manufacturers' Association (Meoma) said.

Effective next month, Meoma said, the Domestic Trade, Cooperatives and Consumerism Ministry (KPDNKK) has taken over the management of the scheme from the Plantation Industries and Commodities Ministry (MPIC).

In a statement today, Meoma said KPDNKK had informed members that the COSS implementation will be restructured into two phases – the first phase from Nov 1 until end of the year and the second phase next year onwards.

In the first phase, the government will only subsidise the 1kg polybag and 5kg bottle resulting in the retail ceiling price for both items to be revised upwards.

The 1kg polybag will see an increase of 40 sen from its current price of RM2.50 to RM2.90 while the 5kg bottle will see an increment of RM1.90 from its present price of RM13.35.

Meoma said all existing companies under COSS intending to participate in the scheme will be given a quota allocation of 70% for 1kg polybag and 30% for 5kg bottle.

"Once the new scheme takes place, all other consumer pack sizes such as 500g, 1kg, 2kg, and 3kg bottle will no longer be subsidised by the government causing it to be sold at open market price and all retail prices of blended cooking oil in various packing sizes also no longer be subsidised," it said.

Meanwhile, Meoma said effective next year the subsidy for the 5kg bottle will be removed and shall be sold at open market price in the retail market.

"The 1kg polybag, however, will continued to be subsidised and subjected to the same quota as determined in the Nov and Dec," it added.

Meoma members will try to ensure sufficient supply of cooking oil in the market for pack sizes as well as engage with KPDNKK to highlight the predicaments faced by members and minimise the potential impact to the consumers under the restructured scheme.