KOTA KINABALU: The Madani Government continues to absorb rising diesel subsidy costs in Sabah and Sarawak to avoid burdening residents despite surging global fuel prices, said Prime Minister Datuk Seri Anwar Ibrahim.
He said the decision was necessary because both Bornean states rely more heavily on diesel compared to Peninsular Malaysia, making any price increase more difficult for the people.
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Anwar said diesel prices were raised in Peninsular Malaysia two years ago but maintained in Sabah and Sarawak due to higher consumption in both states, noting the government must bear the cost as global prices continue to rise.
He said the Federal Government spent about RM2 billion on diesel subsidies for Sabah and Sarawak last year, allocating RM1 billion each, and the cost is expected to rise to about RM4.6 billion this year, including RM2.2 billion for Sabah and more than RM2 billion for Sarawak.
Speaking when officiating National Consumer Day at Suria Sabah on Sunday, Anwar said diesel currently sells at RM2.15 per litre although the actual cost is about RM4.30 per litre, with the Federal Government covering the difference while maintaining the subsidy to ease the burden on the people.
