Datuk Johari Abdul Ghani (centre) has revealed that people have been selling subsidised cooking oil outside the country. ― File pic

KUALA LUMPUR, Oct 23 ― Unscrupulous people have been selling subsidised cooking oil outside the country, causing the government to lose RM540 million a year, Second Finance Minister Datuk Johari Abdul Ghani revealed.

He said the government subsidised up to 85,000 metric tonnes of the control item when the consumption of the nation was only at 40,000 metric tonnes, according to a report today in Mingguan Malaysia the Sunday edition of Malay daily Utusan Malaysia.

“This means there has been an excess 45,000 metric tonnes of cooking oil that goes somewhere,” he was quoted as saying.

For one metric tonne, Johari said the government paid RM1,000.

“Hence, RM45 million multiplied by 12 months is RM540 million, so who is reaping this benefits?” he asked.

According to the report, he said the government continued to dish out subsidies because they came from the people’s money.

Johari reportedly urged the Domestic Trade, Cooperatives and Consumerism Ministry (KPDNKK) to strengthen checks to ensure there were no smuggling activities that benefitted unscrupulous people.

Last week, The Star reported that subsidies for cooking oil will be removed in stages beginning next month, leaving price controls only for 1kg packages.

Johari subsequently refuted of such a move, stressing that the people will continue to benefit from cooking oil subsidy from the government.

He explained that the government only wanted to control the price for export sale.

In announcing the Budget 2017, Prime Minister Datuk Seri Najib Razak said subsidies amounting RM10 billion will be channeled to fuel, cooking gas, toll and public transportation.