Sabah and Sarawak maintain diesel subsidies, minister explains due to location, costs, and dependence on fuel

Sabah and Sarawak maintain diesel subsidies, minister explains due to location, costs, and dependence on fuel

KOTA KINABALU, March 27 — Sabah and Sarawak will continue to receive diesel subsidies, reflecting the states’ unique geography, high fuel reliance, and logistical challenges, said Minister in the Prime Minister’s Department (Sabah and Sarawak) Datuk Mustapha Sakmud.

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KOTA KINABALU, March 27 — Sabah and Sarawak will continue to receive diesel subsidies, reflecting the states’ unique geography, high fuel reliance, and logistical challenges, said Minister in the Prime Minister’s Department (Sabah and Sarawak) Datuk Mustapha Sakmud.

He noted that while the federal government is temporarily adjusting the BUDI95 petrol quota from 300 litres to 200 litres per month starting April 1 amid global energy uncertainties, the RM2.15 per litre diesel subsidy for Sabah and Sarawak will remain under controlled usage. E-hailing drivers and gig workers will also retain an 800-litre quota.

“Fuel policy changes directly affect daily life and local economic activities. The government considers Sabah and Sarawak’s distinct challenges in all national decisions,” Mustapha said.

Economist Assoc Prof Mustazar Mansur of Universiti Kebangsaan Malaysia highlighted that diesel is vital not only for transport but also electricity, fishing, and basic goods logistics. He stressed the need for careful subsidy management to ensure it benefits those who truly need it and to prevent rising consumer costs.

He added that continued engagement with local communities is essential to understand the real impact of fuel policies on everyday life. — Bernama

Minister in the Prime Minister’s Department (Sabah and Sarawak), Datuk Mustapha Sakmud, cited geography and infrastructure challenges in maintaining subsidies for Borneo states. — Picture by Sayuti Zainudin

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