Proactive measures needed to shield Sabah from rising diesel prices, says Tanjung Aru rep

KOTA KINABALU (March 31): Parti Warisan (Warisan) Vice President Datuk Junz Wong has urged the federal and Sabah governments to take immediate and proactive measures to shield consumers and businesses in the state from the ripple effects of rising diesel prices.

Wong warned that although Sabah currently enjoys a regulated diesel price of RM2.15 per litre, the economic shock from sharp price increases in Peninsular Malaysia is already unfolding and could soon impact the state.

“Sabah must not wait until the crisis hits our shores. The warning signs are already clear, when diesel prices spike, transport costs surge, supply chains tighten, and ultimately, ordinary consumers bear the brunt,” he said in a statement.

The Tanjung Aru assemblyman highlighted that businesses in Peninsular Malaysia are already facing severe cost pressures, with some reporting monthly diesel cost increases of up to RM100,000, forcing them to either raise prices or risk shutting down operations.

“Sabah is even more vulnerable due to our dependence on long-distance logistics and inter-regional supply chains.

“Any cost shock in the Peninsula will inevitably be transmitted here, often amplified,” he said.

He stressed that pre-emptive action is crucial to prevent the situation from escalating into a full-blown cost-of-living crisis in Sabah.

Among his proposals are maintaining and guaranteeing the RM2.15 diesel price for key supply chain sectors, including food, construction, and logistics.

Wong also called for engagement with Petronas to channel a portion of oil and gas revenues into a Sabah Diesel Stabilisation Fund aimed at supporting logistics costs.

He suggested emergency financial relief measures, including collaboration with Bank Negara Malaysia to introduce loan moratoriums and low-interest working capital facilities for small and medium enterprises (SMEs).

Targeted grants and accelerated tax deductions could also help businesses offset rising transport and operational costs.

To strengthen supply chain resilience, Wong recommended better coordination across industries, including bulk procurement mechanisms, digitalisation efforts such as shared warehousing, and improved inventory management.

He cautioned that failure to act swiftly could result in significant price increases for essential goods, disproportionately affecting low- and middle-income consumers.

“This is not just a business issue, it is a consumer survival issue. When food prices rise by 20, 30 or even 50 per cent, it is the rakyat who suffer first and suffer most,” he said.

Rising fuel costs, coupled with supply chain disruptions and existing inflationary pressures, could trigger a cascading effect on prices of essential goods, from food to basic household items, he added.

Wong stressed that both the federal and state governments must move beyond reactive measures and adopt a forward-looking crisis management approach.

“Sabah contributes significantly to the nation’s energy wealth. It is only fair that our people are protected from the very shocks arising from that system,” he said.

“The time to act is now, not when businesses start closing and prices spiral out of control,” he said.