Sabah, Sarawak retain diesel subsidy due to unique challenges, says minister

KUCHING (March 27): The decision to maintain the diesel subsidy in Sabah and Sarawak was made in recognition of the states’ unique geography, higher logistics costs and ongoing development challenges.

Minister of Sabah and Sarawak Affairs Datuk Mustapha Sakmud said all parties, including consumers, industry players and enforcement agencies, must play their roles towards ensuring the effective implementation of the policy so that it would benefit all.

“This measure comes at a time when the cost of living and logistics costs in Sabah and Sarawak remain high due to geographical and infrastructure challenges.

“Any changes to fuel policies therefore have a direct impact on the daily lives of the people as well as local economic activities,” he said in a statement.

On Thursday, Prime Minister Datuk Seri Anwar Ibrahim announced that Sabah and Sarawak would continue to enjoy subsidised diesel at RM2.15 per litre, although each purchase will be capped.

Light public land transport, goods vehicles and privately-owned vehicles would be limited to 50 litres per purchase, he said, to ensure sufficient supply and fair distribution.

Adding on, Mustapha said the restructuring of fuel subsidies was introduced in response to global energy price uncertainties and the need for more sustainable fiscal management.

“In this context, the people of Sabah and Sarawak will continue to have access to subsidised diesel at RM2.15 per litre with controlled usage, alongside initiatives such as Budi95 at RM1.99 per litre with a monthly limit of 200 litres,” he said.