Sabah and Sarawak’s higher living costs, logistical challenges justify diesel subsidy difference, says PKR man

KUCHING (March 26): The difference in diesel prices between Peninsular Malaysia and Sabah and Sarawak is a necessary policy measure to balance living and transportation costs across regions, said Abun Sui Anyit.

The Parti Keadilan Rakyat (PKR) Hulu Rajang chief said the price disparity should not be viewed as unfair to consumers in Peninsular Malaysia, but rather as a targeted approach to address the higher cost of living and logistical challenges in Malaysian Borneo.

“In Borneo, (diesel) four-wheel drive (4WD) vehicles are not a luxury but a necessity, given the many areas with untarred and challenging roads. This is unlike the peninsula, which enjoys more comprehensive road infrastructure and public transport facilities.

“Any move to standardise diesel prices nationwide should only be considered when infrastructure and public transport access reach comparable levels across all regions,” he said in a statement.

Diesel in Peninsular Malaysia is currently priced at RM5.52 per litre, while the rate for Borneo states remains at RM2.15 per litre due to subsidies.

Abun stressed that the federal government’s decision to maintain subsidised diesel prices in Sabah and Sarawak should be lauded as a crucial step in safeguarding the welfare of the people in the two regions.

He noted that with global oil prices remaining volatile and trending upwards, government intervention in fuel pricing is vital to ensure economic stability and public wellbeing.

“At the same time, we must acknowledge that RON95 prices in Malaysia are still among the lowest in Asia, except for Brunei,” he added.

He urged Malaysians to practise prudent consumption and resource management in anticipation of a prolonged global oil crisis, while expressing hope that conflicts in the Middle East would not escalate further which could destabilise the global energy market.

On March 17, Prime Minister Datuk Seri Anwar Ibrahim said the federal government will continue maintaining fuel subsidies for Sabah and Sarawak despite rising global oil prices driven by geopolitical tensions.

He was cited as saying the government has allocated RM4.6 billion in diesel subsidies for Sabah and Sarawak in 2026, with RM2.2 billion allocated for Sabah and the remainder for Sarawak.

Anwar said the decision reflects the government’s commitment to easing the cost-of-living burden faced by the people, particularly in East Malaysia.