What Is Bulk Cooking Oil?

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JAKARTA - Currently, packaged cooking oil is expensive and scarce, causing many people to switch to using bulk cooking oil. Although it is considered that the quality is not as good as premium packaged cooking oil which is usually sold in modern retail.

Then, what is bulk cooking oil?

Summarized from various sources, bulk cooking oil is impure cooking oil, such as cooking oil in premium packaging with well-known brands. This is because bulk cooking oil is palm oil that has gone through the stages of refining, bleaching and deodorizing.

Usually, cheap cooking oil is packaged using drums and distributed using tanker cars to various markets throughout the country. In addition, bulk cooking oil is also not accompanied by packaging that is not guaranteed a level of cleanliness. Because, the packaging only uses bottles and plastic bags perfunctory.

Meanwhile, citing the Minister of Trade Regulation (Permendag) No. 6 of 2022, bulk cooking oil is palm cooking oil that is sold to consumers unpackaged and has no label or trademark.

Why is the price of bulk cooking oil cheaper?

Based on the official website of the Indonesian Vegetable Oil Industry Association (GIMNI), the price of bulk cooking oil can be cheaper than the price of premium packaged cooking oil. Because, there is no charge for packaging.

The cost of packaging packaged cooking oil can reach 12 percent of the total cost of producing packaged cooking oil. In other words, the price of bulk cooking oil is 12 percent cheaper than packaged oil.

According to the GIMNI website, bulk cooking oil is distributed from the factory in 180 liter drums to the agents who package it. Then, it is repackaged in jerry cans measuring 10 liters to 20 liters.

Then, the jerry cans are distributed to retail traders who sell them to sellers in plastic packaging. Cooking oil is usually sold to traditional markets, not modern markets. Thus, the distribution costs of packaged cooking oil.