Government allocates RM3.886b for cooking oil subsidies in 2024-2025

KUALA LUMPUR — The government's expenditure on cooking oil subsidies reached RM3.886 billion during the 2024-2025 fiscal period, according to figures released by the Ministry of Finance. The substantial allocation underscores Kuala Lumpur's commitment to maintaining affordable cooking oil prices for Malaysian households and businesses amid volatile global commodity markets.

To partially fund the subsidy programme, the government collected RM3.278 billion in palm oil levies during the same period. These levies, imposed on palm oil exports, have become a key revenue stream supporting the subsidy mechanism while generating income from the country's major agricultural commodity.

The cooking oil subsidy scheme remains a cornerstone of Malaysia's domestic price control measures, designed to shield consumers from sharp fluctuations in global vegetable oil costs. By maintaining subsidised domestic prices, the government aims to prevent inflationary pressures on essential food items that impact household budgets across the nation.

The figures highlight the significant fiscal commitment required to sustain the subsidy framework, with the gap between expenditure and levy collections representing the net budgetary impact on government coffers. Officials have previously indicated that such measures are necessary to maintain social stability and protect lower-income households from market volatility.