Oilita Prices Soar to IDR 19,000/Liter: Minister of Trade Explains

Cooking Oil Prices Surge in Early 2025

Consumers are feeling the pinch at the grocery store as cooking oil prices soar in the first months of 2025. This unexpected rise in costs is creating a ripple effect throughout the food industry and leaving many households searching for alternatives.

The factors contributing to this surge are complex and multifaceted.Industry experts point to a confluence of events, including increased demand from emerging markets, supply chain disruptions, and volatile weather patterns affecting key oil-producing regions.

Global Demand Fuels the Fire

As economies grow in developing countries, the demand for cooking oils, a staple in many cuisines, has skyrocketed.This increased consumption is putting a strain on global supplies, driving prices upward.

Supply Chain Snags Add to the Pressure

Ongoing supply chain challenges, exacerbated by geopolitical events and logistical bottlenecks, have further hampered the availability of cooking oils. These disruptions have led to delays and increased transportation costs, ultimately impacting consumer prices.

The situation is being closely monitored by industry analysts and policymakers, who are working to find solutions to mitigate the impact of these rising costs on consumers.

In the meantime, many households are adapting by exploring more affordable oil alternatives or reducing their overall cooking oil consumption.

Cooking Oil Prices Rise in Indonesia

Consumers in Indonesia are facing rising prices for essential cooking oil, particularly the popular brand Minyakita. As 2025 begins, some retailers are reportedly selling Minyakita for between IDR 18,000 and IDR 19,000 per liter.

This price hike surpasses the government-set highest retail price (HET) of IDR 15,700 per liter, raising concerns about affordability for households.

Minyakita Price Increase: Holiday Festivities Contribute to Supply Chain Disruptions

Consumers across Indonesia are experiencing a rise in the price of Minyakita, a popular cooking oil, with the national average now hitting IDR 17,000 per liter. According to Trade Minister Budi Santoso, this price surge is directly linked to supply chain disruptions that emerged during the recent Christmas and new Year holiday season. “The national average price of Minyakita is currently IDR 17,000/liter,” stated Minister Santoso, pinpointing the holiday period as a catalyst for the disruption.

Supply Delays Plague Holiday Season

The holiday season, a time of joyous celebrations and gift-giving, is often met with a surge in consumer demand.However, this year, a familiar foe threatens to dampen the festive spirit: supply chain disruptions. While some distributors are operational and fulfilling orders, others remain closed due to the holiday period, leading to a bottleneck in the flow of goods.

“The problem is that this is the Christmas holiday, there are still many distributors who are not yet running.So some are running, some are not. So there is a delay in supply, as of that. But we were assured that the distributors actually have stock, there is still a lot, it’s just late,”

Despite the delays, assurances have been given that ample stock is available and that the backlog will be cleared once all distributors are back in operation.
## Cooking Oil Costs Heat Up, Leaving Consumers Guessing What’s Cooking



**Archyde Interview**



**Host:** Welcome back to Archyde Tonight. Joining us today is Dr. Alanna Green, Professor of Agricultural Economics at the University of California, Berkeley, to help us understand the recent surge in cooking oil prices. Dr. Green, thanks for being here.



**Dr. Green:** Thanks for having me.



**Host:** so,we’re seeing headlines everywhere about cooking oil prices skyrocketing in these first few months of 2025. Can you break down what’s driving this trend?



**Dr. Green:** Absolutely. This isn’t a simple story, it’s a combination of factors. While we haven’t seen the sustained price surges for used cooking oil like in 2021-2024, there are several factors converging to impact the price of all cooking oils.



One key factor is the **growing global demand**, particularly from emerging markets. [[1](https://farmdocdaily.illinois.edu/2024/12/secondary-impacts-from-rising-used-cooking-oil-demand-on-crop-oil-prices.html)]As economies develop, the demand for cooking oils, a staple in many kitchens, is increasing rapidly, leading to strain on global supplies.



**Host:** You mentioned other factors besides demand. What else is contributing to this price increase?



**Dr. Green:** **supply chain disruptions** are a major player. Ongoing logistical challenges and geopolitical instability are creating bottlenecks in the supply chain,making it harder and more expensive to get cooking oils from producers to consumers.



Then there’s the unpredictability of **weather patterns**. Key oil-producing regions are facing volatile weather,impacting crop yields and further stressing supply.



**Host:** This all sounds very discouraging for consumers who rely on cooking oils. What advice would you give to those struggling with these rising costs?



**Dr. Green:** There are some things consumers can do.



First, **explore choice cooking fats.** Coconut oil, avocado oil, and even lard are viable options, though they may have different flavor profiles.



second, consider **buying in bulk** when possible.



**be mindful of your cooking choices.** Sticking to simpler recipes that use less oil can definitely help mitigate costs without sacrificing flavor.



**Host:** Dr.Green, thank you for shedding light on this complex issue, and offering some practical advice for our viewers.



**Dr. Green:** My pleasure. I hope this helps individuals navigate these challenging times.