RON95 quota cut could hit Sarawakians, economy, says SUPP man

MIRI (March 27): Sarawak United Peoples Party (SUPP) Pujut Branch has strongly opposed the federal government’s decision to reduce the RON95 fuel subsidy quota from 300 litres to 200 litres per month, saying the move overlooks Sarawak’s unique geography and could significantly impact livelihoods and the local economy.

The branch’s Publicity and Information Secretary, Chong Kong Min, noted that Sarawak’s vast size, dispersed population, and lack of comprehensive public transport mean residents rely heavily on private vehicles for work, business, education, healthcare, and daily needs.

“Unlike Peninsular Malaysia, which is served by networks such as LRT, MRT and KTM, Sarawakians rely heavily on private vehicles for their daily mobility — whether for work, business, education, healthcare or daily necessities.

“In Sarawak, long-distance travel is not a choice, but a way of life,” he said in a statement.

He explained that many residents travel across districts and divisions, with one-way journeys often ranging from 200 km to as much as 800–1,000 km.

A typical 1.5l car, for example, would need refuelling twice for a one-way trip from Miri to Kuching, consuming around 70–80 litres of RON95 fuel.

Combined with daily commuting, a single round trip could almost exhaust the new 200-litre monthly quota.

“This means that after fulfilling basic work and living needs, many Sarawakians would have no choice but to bear additional fuel costs at market price,” he explained.

Chong also highlighted income disparities between East and Peninsular Malaysia, noting that higher transport and fuel costs without corresponding income growth would place a heavier financial burden on lower- and middle-income households.

“The reduction in fuel subsidy quota would directly raise the cost of living and further squeeze disposable income.

“It would also severely impact small and medium enterprises, transport operators, and those who depend on frequent travel for their livelihoods,” said Chong.

He warned that rising transportation and logistics costs would ripple across the region, driving up prices for goods and services and affecting the broader economy.

Chong added that as a key oil and gas-producing region, Sarawak plays an indispensable role in Malaysia’s energy sector.

Yet, the subsidy reduction ignores regional differences, income gaps, and actual fuel consumption patterns, reflecting a “one-size-fits-all” policy that is unfair to East Malaysia.

He urged the federal government to adopt a more targeted approach, such as region-based quotas or additional allocations for high-mobility groups, to meet fiscal objectives without overburdening Sarawakians.

At the same time, he called on the Sarawak government to consider additional subsidies or targeted assistance to ease the impact.

“In the current circumstances, if federal policies are not adjusted in time, intervention by the Sarawak government will be a crucial buffer to stabilise livelihoods and reduce the people’s burden,” he said.