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KPPU proposes cooking oil retail price of IDR 14 thousand per litre

12 September 2022 10:53

JAKARTA – The Ministry of Trade is urged to reduce the Highest Retail Price (lit. Harga Eceran Tertinggi/HET) of cooking oil to IDR 12,000 per litre, or IDR 17,000 per litre for premium-packaged products, following the downturn of crude palm oil (CPO) price in August 2022 compared to July 2021. The current retail price of bulk cooking oil is reportedly IDR 14,000 per litre.

In a press release quoted Monday (12/9), Taufik Ariyanto, Deputy of Policy and Advocacy of Indonesia Competition Commission (lit. Komisi Pengawas Persaingan Usaha/KPPU), mentioned that the Chairman of KPPU had suggested the Minister of Trade to cut down the highest retail price of bulk and premium cooking oil in August 2022.

“The CPO price has gone down compared to July 2021. It is also seen in the ratio of CPO prices to fresh fruit bunches and cooking oil prices in June-July 2021,” Ariyanto added.

According to Ariyanto and looking at the price trend of fresh fruit bunches and CPO until August 2022, the fluctuation of international and domestic CPO prices had stabilised and they approached closer to the price spotted in July 2021. However, this declining price of fresh fruit bunches and CPO had yet to trigger decreases in bulk and premium cooking oil prices.

From July to August 2022, the CPO price in PT Karisma Pemasaran Bersama (KPB), the cooking oil manufacturer used as a reference point, reached IDR 9,900 per kg, with a price ratio of CPO to premium-packaged cooking oil of 2.4 to 3. Meanwhile, the price ratio of CPO to bulk cooking oil was 1.6 to 1.9. For the record, the CPO prices in H1 2021 and in June-August 2022 were relatively unchanged.

For comparison, in 2021, the ratio of CPO price to the premium cooking oil price was 1.5 to 1.7, while the ratio of CPO price to the bulk cooking oil price was 1.3 to 1.5, which were lower than the ratios seen at the beginning of this year. (LK/ZH)

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