The government will continue its market operations in traditional markets as well as for modern retailers in a bid to stabilize the price of edible oil.

“We will ensure the availability of edible oil at affordable prices at modern retailers as well as the traditional market,” Trade Minister Muhammad Lutfi noted in a statement here on Tuesday.

During the Christmas 2021 and New Year celebrations, the government distributed vegetable oil in simple packaging to modern retailers and were sold at Rp14 thousand per liter.

Lutfi believes that the price would be maintained and the operation would be expanded to the traditional market in response to a recent hike in the commodity’s price.

To this end, the government will utilize the subsidy from the Palm Oil Plantation Fund Management Agency (BPDPKS).

“The government, under the coordination of the Coordinating Ministry of Economic Affairs, will use the BPDPKS’ fund management for staple foods, especially to stabilize the price of edible oil,” he affirmed.

The ministry has worked in close coordination with producers, distributors, and local governments to monitor the supply of edible oil to avoid paucity in the traditional market.

“We have urged local governments to conduct market operations in their respective regions,” he remarked.

The price of edible oil in the domestic market was driven by the increased price of Crude Palm Oil (CPO) in the international market that had reached US$1,340 per metric ton.

As of January 3, 2022, the bulk edible oil price had reached Rp17,900 per liter, edible oil in simple packaging at Rp18,500 per liter, and premium packaging at Rp20,300 per liter.

Source: Antara News