Subsidised cooking oil sold as prayer oil with 228% markup, claims group
PETALING JAYA : The Penang Hindu Association (PHA) has raised concerns over the misuse of subsidised cooking oil by suppliers who repackage and resell it as prayer oil at inflated prices.
In a statement, the group said subsidised cooking oil, which retails at RM2.50 per litre, was being repurposed and sold as prayer oil at RM8.20 per litre or more – a profit margin of over 228%.
'These subsidies have been misused by some unscrupulous suppliers who profit from rebranding the cooking oil as prayer oil and selling it for hefty profits,' said PHA.
The association said the issue was not new, as domestic trade and cost of living ministry officers had caught traders engaged in similar practices before.
In January, for instance, a Johor man was caught by the ministry's officers repacking 5,100 bottles of subsidised cooking oil as prayer oil.
PHA urged the ministry to intensify its monitoring efforts and conduct thorough inspections of the sourcing and pricing of prayer oil sold at temples and retail outlets.
It also called for the full implementation of the cooking oil price stabilisation scheme system (eCOSS) to help track subsidised cooking oil from refineries to retailers.
'We also urge the ministry to instruct prayer oil traders to clearly state on the labels the source and retail price of the prayer oil,' said PHA.
Domestic trade and cost of living minister Armizan Mohd Ali previously told FMT that eCOSS had been introduced in 2023 to track the supply chain of subsidised cooking oil.
Since last year, repackers and refineries have been required to submit subsidy claims based on eCOSS records.
However, the system only tracks distribution from refineries to repackers, wholesalers and retailers, leaving a gap at the retail level, he said.
Such limitations increase the risk of leakage, including smuggling and the fraudulent repackaging of subsidised cooking oil for resale at higher prices.
The government spent RM1.945 billion in 2024 to provide 60,000 tonnes of subsidised oil packets monthly at RM2.50 per kg under eCOSS.
However, the scheme drew criticism after enforcement operations revealed that foreigners were among those benefitting from the subsidised cooking oil.
This led to renewed calls for the replacement of the subsidy with a cash transfer system based on verified household consumption to ensure that only deserving Malaysians receive the aid.
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