PM Anwar: Federal govt to cover RM4.6 billion diesel costs for Sabah, Sarawak in 2026

File photo for illustration purposes only. Image by Engin Akyurt from Pixabay.

By Shikin Louis

KUCHING, March 15: The federal government will absorb RM4.6 billion in diesel subsidies for Sabah and Sarawak this year, shielding residents from the impact of rising global oil prices.

Prime Minister Dato’ Seri Anwar Ibrahim said of the total subsidy, RM2.2 billion is for Sabah and just over RM2 billion for Sarawak.

“At the pump, diesel costs RM2.15 per litre, but the real cost is RM4.30. Every time you buy diesel at RM2.15, remember the real cost is RM4.30.

“And who pays the difference? The federal government,” he said when speaking at the National Consumer Day 2026 celebration in Sabah. The report is based on a livestream of his speech on Berita RTM’s Facebook page.

In Sabah and Sarawak, diesel consumption is higher than in Peninsular Malaysia due to long distances and heavy transport use. Two years ago, when diesel prices increased in Peninsular Malaysia, the federal government kept diesel prices in the two states unchanged to protect residents and businesses.

In 2025, before the global oil price spike, subsidies for the two states totalled RM2 billion — RM1 billion each.

Anwar also highlighted that the retail price of RON95 petrol remains at RM1.99 per litre, despite Brent crude rising from USD70 to USD103 per barrel.

“We cover RM2 billion per month for RON95 — that’s RM24 billion per year. Only Brunei is slightly cheaper. In Singapore, petrol is now over RM10 per litre. Most ASEAN countries have raised prices, but we remain at RM1.99,” he said.

Anwar added that the government will maintain RON95 prices through April and May, before holding further negotiations to ensure long-term sustainability. — DayakDaily