A shortage of cooking oil has left shelves empty across Johor, with 1kg and 2kg bottles of locally produced palm oil becoming increasingly scarce. Retailers and consumers alike are grappling with limited supplies, a situation exacerbated by soaring global crude palm oil prices and production challenges. As the issue unfolds ahead of festive seasons like Aidilfitri, concerns are mounting over affordability and access to this kitchen staple, prompting state authorities to seek urgent solutions.

Empty Shelves and Rising Costs

In Johor Baru and surrounding areas such as Larkin, Tampoi, Pasir Gudang, and Kulai, sundry shops and supermarkets have reported a severe lack of smaller bottled palm oil since the start of the year. Wong Kok Wai, a second-generation wholesaler and secretary of the Johor Federation of Grocery and Sundry Goods Merchants Association, noted that his stock of 1kg and 2kg bottles has been critically low since January. “Suppliers have simply stopped delivering these sizes,” he said, pointing to a nationwide issue.

A 1kg bottle of palm oil typically retails at RM6.90, while a 2kg bottle costs RM12.70, making it an affordable option for many households. However, with these sizes unavailable, consumers are forced to turn to pricier alternatives like peanut, canola, corn, and sunflower oils, which can cost nearly double. Wong added that while subsidised cooking oil packets priced at RM2.50 remain steady in supply, they are insufficient to meet the demand for bottled options. Larger 5kg bottles, priced at RM30.90, are still available but in limited quantities.

The situation is echoed by larger retailers. Mas Imran Adam, general manager of a supermarket chain, revealed that since December, their supply has dwindled to just 25% of normal levels. “If we usually receive 1,000 tonnes, we’re now getting only 250 tonnes,” he explained. Many branches are affected, with some outlets having no cooking oil at all, while others stock only one type. The scarcity of 1kg and 2kg bottles is particularly acute, leaving consumers frustrated.

Soaring Palm Oil Prices and Production Woes

At the heart of the shortage lies a dramatic rise in global crude palm oil prices, which Wong described as reaching an “all-time high.” Current market projections suggest prices could hit RM5,300 per tonne, a sharp increase from the previous peak of RM3,800 per tonne. Malaysia, one of the world’s largest producers of palm oil, plays a significant role in the global supply chain, and these price surges have far-reaching impacts.

The high costs have made it unprofitable for factories to produce cooking oil at government-controlled prices, leading to reduced output. “Factories are reluctant to increase production because they can’t make a profit under the current pricing structure,” Wong explained. This has created a bottleneck, particularly for smaller bottle sizes, which are in higher demand among individual households compared to bulk options.

Adding to the complexity, some retailers have observed unusual consumer behaviour. Tiong Foo Kai, a supermarket owner, reported an unexpected spike in demand, with a week’s supply of 250kg of packet cooking oil selling out within an hour. “Even with a purchase limit of three packets per person, customers are coming in groups to buy in bulk,” he said, expressing confusion over the apparent panic buying. Despite receiving at least 2,000kg of cooking oil monthly, the rapid depletion suggests deeper concerns among consumers about future availability.

The cooking oil shortage in Johor is more than a mere inconvenience; it reflects broader economic pressures facing Malaysia and the global palm oil market. Palm oil is not just a cooking essential but a cornerstone of the Malaysian economy, with the country exporting billions of ringgit worth of the commodity annually. However, fluctuating global prices, influenced by factors such as weather conditions, geopolitical tensions, and demand from major importers like India and China, often disrupt domestic supply chains.

For ordinary households, the shortage poses a direct challenge to affordability, particularly for low-income families who rely on subsidised or low-cost palm oil. With alternative oils costing significantly more, the rising cost of living—a persistent concern in Malaysia—becomes even more pronounced. This is especially troubling as festive seasons approach, when demand for cooking oil typically surges for preparing traditional dishes.

Moreover, the issue highlights the tension between government price controls and market dynamics. While price caps are intended to protect consumers, they can discourage production when raw material costs outpace regulated retail prices. If unaddressed, this could lead to recurring shortages, not just for cooking oil but for other subsidised goods as well.

Government Response and Potential Solutions

The Johor state government has acknowledged the crisis and is taking steps to address it. Lee Ting Han, the state’s investment, trade, consumer affairs, and human resources committee chairman, confirmed that Johor Mentri Besar Datuk Onn Hafiz Ghazi has been briefed on the matter. “We are aware of the issue and are looking into it,” Lee said, adding that the state plans to collaborate with the federal Domestic Trade and Cost of Living Ministry to find solutions.

Among the proposed measures are redirecting supplies to more populated areas and revising the current supply and quota system to better match demand. However, these are short-term fixes that may not address the underlying issue of unprofitable production under price controls. A more sustainable approach could involve temporary subsidies for manufacturers or a review of price caps to incentivise output without burdening consumers—a delicate balance that policymakers must strike.

There is also the question of consumer behaviour and communication. The panic buying observed by retailers like Tiong suggests a lack of confidence in supply stability. Clear messaging from authorities about stock levels and distribution plans could help alleviate fears and prevent hoarding, which only exacerbates shortages.

Regional and Global Context

Johor’s cooking oil shortage is not an isolated incident but part of a broader trend affecting palm oil-producing regions. In recent years, Malaysia and neighbouring Indonesia, which together account for over 80% of global palm oil supply, have faced similar challenges due to price volatility and supply chain disruptions. Domestic shortages often coincide with export demands, as producers prioritise international markets where prices are unregulated.

Globally, the palm oil industry is under scrutiny for environmental and labour issues, which further complicate production. While these factors may not directly cause Johor’s current shortage, they contribute to the industry’s instability, affecting everything from plantation yields to refining capacity. For Malaysia, ensuring domestic food security while maintaining its position as a leading exporter remains a persistent challenge.

A Balance of Commodities and Market Prices, and Needs

As Johor grapples with empty shelves and frustrated consumers, the cooking oil shortage underscores the fragility of supply chains for essential goods in the face of global economic pressures. For now, retailers like Wong advise consumers to purchase only what they need, avoiding stockpiling that worsens the situation. “We still have some options available, and we hope supply will stabilise soon,” he said.

Yet, the resolution of this crisis will require more than consumer restraint. It demands a coordinated effort between state and federal authorities, manufacturers, and retailers to address production disincentives and distribution inefficiencies. If crude palm oil prices continue to climb, as projections suggest, the government may need to explore innovative policies—perhaps temporary relief for producers or increased imports of alternative oils—to prevent further strain on households.

For the people of Johor, the hope is for a swift return to normalcy, where a trip to the local supermarket no longer means returning empty-handed. Until then, the shortage serves as a reminder of the intricate links between global markets, local policies, and the daily lives of ordinary citizens. With the right interventions, Malaysia can navigate this challenge, ensuring that access to basic necessities like cooking oil remains within reach for all.