Cooking Oil Prices Are Getting More Expensive in Palm Rich Countries

Jakarta

Cooking oil prices are still being observed to rise in the last few days. The price increase occurred in branded packaged cooking oil and bulk cooking oil.

It was observed on Hargapangan.id, from November 1 to November 5, the price of packaged cooking oil branded 1 consistently rose, namely with movements of Rp. 17,750, Rp. 17,850, Rp. 17,850, Rp. 18,000, Rp. 18,050 per kg.

Cooking oil branded 2 also experienced an increase on November 1-5, sequentially increasing by Rp. 17,250, Rp. 17,300, Rp. 17,400, Rp. 17,550, Rp. 17,600 per kg.

The price of bulk cooking oil also rose from November 1 to 5 with price movements of Rp 16,750, Rp 16,800, Rp 16,950, Rp 17,000, Rp 17,000 per kg.

Based on the Ministry of Trade’s monitoring, the current national average cooking oil price for bulk cooking oil is Rp 16,100/liter, simple packaged cooking oil Rp 16,200/liter, and premium packaged cooking oil Rp 17,800/liter.

Okay, explaining that cooking oil prices rose more because international prices rose quite sharply. This is because the supply of cooking oil in the community is currently safe. The national demand for cooking oil is 5.06 million tons per year, while its production can reach 8.02 million tons.

He continued, although Indonesia is the largest producer of crude palm oil (CPO), conditions on the ground show that most cooking oil producers are not integrated with CPO producers.

With different business entities, domestic cooking oil producers must purchase CPO according to the domestic auction market price, namely the Dumai KPBN auction price which is also correlated with international market prices.

“As a result, if there is an increase in international CPO prices, then domestic CPO prices will also adjust to international prices,” explained Oke.

In addition, the increase in cooking oil prices was also triggered by the decline in palm oil harvests in the second semester in the country. As a result, the supply of CPO is limited and causes disruption to the distribution chain (supply chain) of the cooking oil industry, as well as an increase in demand for CPO for the fulfillment of the biodiesel industry in line with the implementation of the B30 policy.

“The trend of increasing CPO prices has occurred since May 2020. This is also due to the decline in world palm oil supply along with the decline in Malaysian palm oil production as one of the largest producers. In addition, the low stock of other vegetable oils, such as the energy crisis in the European Union, China and India have caused these countries to switch to vegetable oil. Another factor is logistical disruptions during the COVID-19 pandemic, such as the reduced number of containers and ships,” added Oke.

The government’s move to lower cooking oil prices continues on the next page.

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