He said this nationwide audit will involve 22 manufacturers and 305 premises that package the cooking oil into the 1kg polybags.

He said this was to prevent leakages and to ensure that the RM4 billion being spent to subsidise cooking oil sold in polybags was reaching consumers.

“The audit intends to determine the amount of cooking oil sold in packets being produced as well as to obtain information about the recipients of the subsidised cooking oil,” he said in a statement.

He warned that manufacturers involved in leakages of the subsidised cooking oil will have their quotas and licences cancelled.

On July 1, the government ceased subsidising bottled cooking oil (2kg, 3kg and 5kg), but cooking oil sold in 1kg polybags continues to be subsidised.

Ismail said current statistics showed that 60,000 metric tonnes of cooking oil sold in 1kg polybags were being distributed a month, adding that this was more than what was being used by households in Malaysia.

He added that the government would continue to prioritise food security and manage the rising cost of living in the country.