Bulk Cooking Oil Prices Skyrocket, Trade Minister: Inevitable

Cooking oil (Photo: dock. Antara)

JAKARTA - Minister of Trade (Mendag) Zulkifli Hasan said that the increasing price of bulk cooking oil in the market is something that cannot be avoided.

Zulhas, as Zulkifli Hasan is familiarly called, revealed that the increase in bulk cooking oil prices could not be separated from the decline in the realization of Domestic Market Obligation or DMO from producers.

"The increase in bulk cooking oil cannot be avoided due to the decline in the realization of the distribution of bulk cooking oil DMOs," he said during a working meeting with Commission VI of the DPR, at the DPR Building, Parliament Complex, Senayan, Jakarta, Wednesday, March 13.

Furthermore, Zulhas explained that the decline in DMO was also due to the sluggish export of crude palm oil (CPO) and derivative products.

"This is the impact of the sluggish exports of CPO and its derivative products. So that the DMOs carried out by producers have decreased slightly compared to last month," he explained.

Based on data from the Ministry of Trade, the realization of DMO until the end of February 2024 was 123,536 tons. This achievement only states that 41.2 percent of the target of meeting 300,000 tons per month.

"The positive part is that the proportion of Oilita is maintained above 40 percent with a bulk cooking oil proportion of 56,992 tons and our oil is 66,550 tons of total supply," he said.

Referring to the price panel of the National Food Agency as of March 13, the price of national bulk cooking oil at the retail trader level is IDR 15,650 per kilogram (kg).

Meanwhile, the highest national average price of IDR 20,000 per liter is in the Papua Mountains. Meanwhile, the national average price is IDR 14,150 per liter in the Bangka Belitung Islands.