The Ministry Of Trade Says That The Fair Price Of Cooking Oil Is The Highest At IDR 25,000 Per Liter

Illustration (doc. between)

JAKARTA - The government through the Ministry of Trade (Kemendag) has revoked the highest retail price (HET) for cooking oil commodities. In this way, the price of cooking oil is returned through the market mechanism. The reasonable price for self-fried is a maximum of IDR 25,000 per liter.

Then, what is meant by the market mechanism price?

The Director General of Domestic Trade (Dirjen PDN) Oke Nurwan said that the market mechanism is an adjusted economic price from the market itself. Such as production costs, crude palm oil (CPO) prices and also brand differences.

Furthermore, Oke explained that the reasonable price for cooking oil was Rp. 25,000 per liter at the highest.

"I estimate that the fair price for the cooking oil will be Rp 19 thousand to Rp 25 thousand, from bulk to premium," he said at Pasar Senen, Central Jakarta, Thursday, March 17.

According to Oke, actually this fair price is also determined by the community themselves. If it is not purchased, then it is indeed not a reasonable price, especially for new cooking oil brands that are not known to the public.

"Yes, it will not be purchased above Rp. 25,000, the economic price is the market price. The market consists of supply and demand. Even though there is a lot of supply, if there is no demand, then I don't want to," he explained.

Oke said that through this mechanism, the market is also expected to be able to understand people's demands by not setting excessive prices.

Furthermore, Oke predicts that premium packaged cooking oil in the market will be sold at a price of Rp. 25,000.

"So there are premium movements that may be sold below Rp. 25,000, Rp. 22,000, Rp. 21,000 because they want to win people's hearts," he said.