SUPP Stakan opposes reported plan to cut subsidised RON95 quota

KUCHING (March 26): Sarawak United People’s Party (SUPP) Stakan branch has opposed the federal government’s reported proposal to reduce the subsidised RON95 fuel quota from 300 litres to 200 litres per vehicle per month, calling it “unfair and insensitive” to Sarawak’s conditions.

Its chairman Datuk Sim Kiang Chiok said the proposed reduction fails to consider the state’s realities, particularly the lack of a comprehensive public transport system.

He said Sarawak’s vast geographical size and dispersed population make private vehicles a necessity rather than a luxury.

“Many residents travel more than 2,500 kilometres a month for work, education and healthcare, making the proposed 200-litre limit insufficient,” he said in a statement.

“A reduction in the subsidised fuel quota will compel many Sarawakians to purchase fuel at market prices, significantly increasing their cost of living,” he added.

Sim warned that higher fuel costs would also drive up transportation and logistics expenses, which would ultimately be passed on to consumers.

He said this could result in broader price increases in goods and services nationwide.

He also argued that the proposal was unjust given Sarawak’s role as a major oil and gas producing state contributing substantially to national revenue.

“It is only fair that Sarawakians benefit from the resources extracted from our own soil,” he said.

Sim urged Petroliam Nasional Berhad (Petronas) to use its windfall profits, particularly during periods of high global oil prices, to sustain fuel subsidies rather than reduce assistance.

He described the proposal as a “one-size-fits-all” policy and called on the government to reconsider and introduce a Sarawak-specific fuel subsidy mechanism that reflects the state’s geographical challenges and resource contributions.

Earlier reports indicated that the government is considering reducing the monthly subsidised RON95 quota under the Budi95 programme from 300 litres to 200 litres, with possible implementation next month amid rising global fuel prices.

Once the quota is exceeded, consumers would pay a floating market price.