Traders In Palembang Screaming About The Impact Of Rising Cooking Oil Prices, Many Consumers Protest

PALEMBANG - A number of basic food traders in the traditional market of Palembang City, South Sumatra, have complained about the increase in cooking oil prices in recent weeks. As a result, there was a significant decline in sales.

As experienced by Deka (55), a basic food trader at KM 5 Market, Jalan Colonel H Burlian, Kemuning District. The price of cooking oil, explained Deka, has increased from the original distributor of Rp. 12 thousand to Rp. 18 thousand.

The price, he continued, is for lower-middle class packaged cooking oil. Meanwhile, for the best quality cooking oil, from Rp. 32,000 per liter, it rose to Rp. 42,000 per liter.

Because he had no choice, Deka raised the selling price of oil despite protests from consumers.

"That's the price of capital that rose from distributors. So we were forced to also increase it, even though it was only IDR 1,000-IDR 1,300 per liter. That's our advantage. It's been suppressed, we can't go up anymore, many buyers protest," said Deka as quoted by Antara. , Tuesday, December 21.

He admits that under normal conditions, the maximum profit from selling cooking oil is IDR 2.4 million per month. However, with this increase, the benefits are very small.

"We lost customers for cooking oil. We only rely on other basic necessities whose prices are stable," he said.

Based on field observations, price increases did not only occur in packaged oil commodities but also bulk oil. Sadaga (30), a basic food trader at Sekip Market, Ujung Jalan Ampibi, Kemuning District, said that the price of bulk oil previously valued at Rp. 17,000 - Rp. 19,000 rose to Rp. 20,000 per liter two months ago.

"Currently it is worth Rp. 20,000 per liter," he said.

Because there is no certainty about the price, he continued, he decided to no longer sell bulk cooking oil, only enough packaged oil.

"There is no longer selling in bulk other than because it is complicated, then the profit is small plus the price continues to rise. Now we only sell bottled oil, although the profit is low, I'm sure it will only be temporary," he said.

In this way, he hopes, the government and related agencies can immediately overcome the increase in cooking oil prices so that it does not burden traders, especially small-scale traders.

Head of the South Sumatra Trade Service Ahmad Rizali said the government had responded to the increase in cooking oil prices by launching cheap cooking oil markets in a number of traditional markets in Palembang City.

"Packaged cooking oil sold in the cheap market is priced at Rp. 14,000 per liter. This price is cheaper than cooking oil currently sold in the market," he said.

This cheap cooking oil market is held in nine traditional markets in Palembang for nine days from Tuesday to Thursday.

Includes Km 5 Market (22 December 2021), Cinde Market (23 December 2021), Soak Market (24 December 2021), Gasing Market (27 December 2021), Perumnas Market (28 December 2021), Kuto Market (29 December 2021), and Pasar Padang Tuesday (December 30, 2021) with 3,000 liters of each market prepared or a total of 22,250 liters.

"Hopefully, the household burden can be lightened. There are no conditions for every purchase. But each person can't be more than 2 liters, so that everyone gets, from 3,000 liters / market, we are targeting to meet 1,500 heads of households in the area," he said.

According to him, South Sumatra is not the only area that has experienced an increase in cooking oil prices, but it occurs in many regions nationally, so the handling is quite complex.

This is because the price increase was an unexpected impact after the use of CPO oil or palm oil which became the raw material for cooking oil as renewable energy (ETB).

"The increase in cooking oil prices since the use of CPO for renewable energy was approximately two months ago. So as long as CPO is used by other parties, the price is difficult to come down, not because of speculators or other reasons," he said.

So in the future, he suggested, there needs to be a stipulation of limits between the use of CPO to be processed into ETB and CPO for basic commodities so that there will be price stability.

Meanwhile, the public, both traders and buyers, are expected to always be wise in dealing with this volatile condition of rising cooking oil prices.

"That is our suggestion so that there is price stability for basic commodities. Meanwhile, through the holding of the cheap market, it is hoped that prices will stabilize until they return to normal to ease the community," he said.