THE Federal Government’s decision to maintain subsidised diesel prices in Sabah and Sarawak is justified, taking into account geographical factors and the still significant price gap for goods compared to Peninsular Malaysia.
Minister Armizan said although fuel price adjustments were implemented recently, the Government considered various factors before deciding to continue the diesel subsidy in the two regions.
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One of the main reasons being the high usage of diesel in Sabah and Sarawak.
“Many residents in both states still rely on diesel for daily needs, including generating electricity, transportation and the operation of small machinery.
“The geographical conditions in Sabah and Sarawak mean that diesel usage among households and local communities is higher compared with Peninsular Malaysia.
He was commenting on complaints in the peninsula on the decision to maintain diesel subsidies in Sabah and Sarawak.
Recently, the government announced adjustments to retail fuel prices effective from March 12 to 18, with the prices of RON97 and RON95 petrol without subsidy increased by 60 sen per litre.
Diesel prices in Peninsular Malaysia rose by 80 sen per litre to RM3.92 per litre, while there was no similar increase in Sabah, Sarawak and the Federal Territory of Labuan.
Armizan said people in Sabah and Sarawak also face higher prices for goods due to various factors, including transportation costs, logistics and distant supply sources.
“This is not a new issue but one that has persisted for decades and remains a challenge that the government must address.”
He added that the government has also introduced various initiatives to stabilise the prices of goods in Sabah, Sarawak and the Federal Territory of Labuan to ensure that people in these regions are not further burdened by differences in the prices of daily necessities.
As long as the price gap for goods between Sabah, Sarawak and Peninsular Malaysia has not been fully resolved, Armizan said the Government needs to take appropriate measures to safeguard the well-being of the people in the two regions.
According to him, a large portion of the income of people in Sabah and Sarawak is spent on essential goods, including food, whose prices differ significantly from those in Peninsular Malaysia.
“Therefore, maintaining the diesel subsidy in Sabah and Sarawak is an important step to ensure that the people’s cost of living does not continue to rise. And this government decision was made based on comprehensive considerations and the realities faced by the people in both regions,” he said.
