The government will spend about RM15 million a month to keep bottled cooking oil at its ceiling prices, after rising crude palm oil costs led some manufacturers to stop production, Domestic Trade and Cost of Living Minister Armizan Mohd Ali said on Wednesday (Nov 11).
Armizan said the Cabinet approved the special monthly incentive at its meeting on Nov 6. It will go to manufacturers of bottled pure palm cooking oil under the Cooking Oil Price Control Mechanism, to keep the ceiling prices in place and ensure a stable supply.
“This is part of a strategy to overcome the rising cost of goods by ensuring stable prices amid the repercussions of the Middle East conflict,” he said in a statement.
The ceiling retail prices, set under the Price Control and Anti-Profiteering Act 2011, are RM6.90 for a 1kg bottle, RM13.30 for 2kg, RM19.60 for 3kg and RM30.90 for 5kg.
Armizan said crude palm oil (CPO) prices had been on an upward trend since June 2025, increasing the financial pressure on manufacturers, and some had been forced to halt production. CPO prices stood at RM4,400 a tonne in October, he said, which would have pushed the price of a 5kg bottle of cooking oil to RM34.
“The government, therefore, needed to intervene to prevent any disruption to supply and price instability,” he said, adding that his ministry had worked with the finance ministry and other ministries on the measure.
Armizan also spoke to reporters at the annual general meeting of the Malaysian Muslim Restaurant Owners Association (Presma). The association’s president, Mohammed Mosin Abdul Razak, said stable cooking oil prices would help restaurant operators manage their costs, and hoped the government would consider targeted help for restaurants in future, similar to the support given to manufacturers.
Bottled cooking oil is a daily staple for households and food businesses, so keeping its price stable helps limit the knock-on effect on food prices. The government is also subsidising RON95 petrol through the BUDI95 scheme, which it says mainly benefits B40 and M40 households.