THE Madani government continues to absorb rising diesel subsidy costs in Sabah and Sarawak to avoid burdening the people in both states, particularly amid surging global fuel prices, said PM Anwar.
He acknowledged that diesel pricing posed a significant challenge for the government, but emphasised that maintaining the subsidy was necessary due to the higher reliance on diesel in both states.
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“When diesel prices were increased in Peninsular Malaysia two years ago, the government decided not to raise prices in Sabah and Sarawak because diesel consumption is significantly higher in the two Bornean states. If prices increase, it will be difficult. People travelling from here to places like Kundasang or those in Tawau will feel the impact because diesel usage is higher.
“But global diesel prices have surged dramatically. So who should bear the cost? It’s the Government. When we understand this, we can engage in constructive discussions and find good solutions together, because we must consider where the additional RM4.3 billion will come from,” he said, when officiating the National Consumer Day at Suria Sabah.
Also present were Chief Minister Datuk Seri Hajiji Haji Noor, Domestic Trade and Cost of Living Minister Datuk Armizan Mohd Ali, his Deputy Minister Datuk Dr Fuziah Salleh, State Minister of Women, Health and People’s Wellbeing Datuk Julita Majungki and senior officials.
Last year, Anwar said the government spent about RM2 billion on diesel subsidies for Sabah and Sarawak, with RM1 billion allocated to each state, even before the recent surge in global fuel prices.
He pointed out that such subsidies were not part of the provisions under the Malaysia Agreement 1963, which primarily covers development matters such as infrastructure and schools.
Nevertheless, he said the Government decided to maintain the subsidy after considering the economic realities faced by residents in both states.
Anwar also credited Hajiji for consistently advocating for the welfare of Sabahans.
“Hajiji may appear calm, but if I increase prices, he will call me and remind me not to burden the people of Sabah whenever the issue of price increases arises He would say ‘Datuk Seri, please help. The people of Sabah are struggling. Do not burden them.’ That is why this Chief Minister is good – he represents the spirit of Malaysians,” he said.
For this year, Anwar said diesel subsidy costs for Sabah and Sarawak have risen sharply to about RM4.6 billion, with RM2.2 billion allocated for Sabah and more than RM2 billion for Sarawak.
He said the current pump price of diesel stands at RM2.15 per litre, while the actual cost is about RM4.30 per litre, meaning the federal government covers the difference.
“Every time you buy diesel at RM2.15, remember that the actual cost is RM4.30. The Federal Government pays the difference,” he said.
Anwar said the figures are shared to inform the public of the government’s efforts as some critics claimed federal was neglecting Sabah. “That is not true. No one pressured us to do this. It is our responsibility to ease the burden of the people,” he said, adding that discussions would continue on how to sustain the subsidies moving forward.
