July 3, 2025
KUALA LUMPUR – Penang Hindu Association claims unscrupulous suppliers making profits of over 200% by repackaging product
Penang Hindu Association (PHA) is claiming that some bottles containing prayer oil, sold at nearly RM9 per litre, are actually just ordinary, subsidised Malaysian cooking oil, which can be purchased for RM2.50 per litre.
Its president Datuk P. Murugiah urged the authorities to clamp down against the practice.
He claimed that unscrupulous suppliers were making a profit margin of over 228%, adding that subsidised cooking oil was meant for low-income households.
“We found that most of the ‘prayer oil’ sold in the state, especially in temple supply stores, is actually repackaged subsidised cooking oil, originally priced at RM2.50 per litre.
“One particular brand is now being sold at RM8.20 per litre in the open market as oil for ritual use. Some brands cost even more.
“The practice, if left unchecked, will defeat the purpose of the subsidy meant for the B40 group,” he added.
Introduced to help keep daily essentials affordable, Malaysia’s subsidised cooking oil comes in locally packed polybags.
Murugiah said any loophole in the system would put pressure on domestic oil supplies and affect both consumers and honest retailers alike.
“The issue is not new. In 2023, the Domestic Trade and Cost of Living Ministry caught a trader repackaging subsidised cooking oil into different bottles and selling it as prayer oil at high prices.
“Some suppliers even resorted to using colour dyes in the oil to deceive the authorities.
“We hope the ministry will look into this and carry out frequent spot checks at retail outlets, especially those selling religious paraphernalia,” he said.
Murugiah said the association also wanted clearer labelling regulations.
“We urge the ministry to compel prayer oil traders to declare the source of their products and clearly list the retail price on the packaging.
“This is in line with labelling laws and to ensure consumers are not misled,” he said.
He added that the association also supported a nationwide rollout of the Cooking Oil Price Stabilisation Scheme (eCOSS), designed to track the supply of subsidised oil from refinery to retail.
He said eCOSS could plug the loopholes currently exploited by rogue suppliers.
He urged consumers to stay alert and check the source of the oil purchased for prayer use.
“It is important not to be misled by unscrupulous parties,” he added.
Penang Domestic Trade and Cost of Living Ministry (KPDN) director S. Jegan said action would be taken against anyone involved in the misuse of subsidised goods.
He said the ministry was consistently monitoring the use of cooking oil, not only supply issues, but also its misuse, including for religious rituals as highlighted by PHA.
“However, we have not received any official complaints on this matter.
“Enforcement officers will continue to act under all relevant laws, including those governing subsidised goods,” Jegan said.