Kota Kinabalu: Claims that lower diesel prices in Sabah and Sarawak are unfair are baseless and reflect a poor understanding of the ground realities, says Datuk Zulkarnain Mahdar.
The Gerakan Kuasa Rakyat Malaysia (G57) chairman stressed that the RM2.15 per litre diesel price in Sabah, Sarawak and Labuan is not a privilege, but a necessity.
“Diesel is not a choice here, it is the lifeblood of daily living,” he said in a statement.
Zulkarnain explained that diesel is widely used across East Malaysia for land transport, boats, logistics and even electricity generation, particularly in rural and interior areas where infrastructure remains limited.
He noted that challenging road conditions in many parts of Sabah also force residents to rely on four-wheel-drive vehicles, which run on diesel, as part of their daily survival.
“This is not about lifestyle choices, it is about the basic need to move and sustain livelihoods,” he said.
At the same time, he pointed out that the cost of living in Sabah and Sarawak remains higher, with essential goods often priced significantly above those in Peninsular Malaysia.
Zulkarnain also highlighted that both states are major contributors to the nation’s petroleum revenue, rather than mere recipients of subsidies.
He said Malaysia’s petroleum revenue from 2018 to 2024 is estimated at RM775.2 billion, with Sarawak contributing about RM285.4 billion, Peninsular Malaysia RM284.8 billion and Sabah approximately RM205 billion.
“This means Sabah and Sarawak together contribute more than half of the country’s petroleum income,” he said.
Despite this, he noted that both states receive only around five per cent in petroleum royalties, far below long-standing calls for up to 40 per cent in line with the spirit of the Malaysia Agreement 1963.
“This clearly shows that Sabah and Sarawak have long contributed significantly to the nation, yet continue to face disparities in returns,” he said.
He added that while petroleum resources in Peninsular Malaysia are declining, new discoveries are increasingly concentrated in Sabah and Sarawak, reinforcing their role as the backbone of the country’s future oil and gas industry.
As such, Zulkarnain said it is unreasonable to question diesel pricing in the two states without understanding the broader context.
“It is unfair to judge from the comfort of urban centres in Peninsular Malaysia without appreciating the daily challenges faced by people in Sabah and Sarawak,” he said.
He also dismissed claims that the two states receive special treatment as misleading.
“What exists is a policy adjustment based on geographical realities, the needs of the people and the significant contributions of Sabah and Sarawak to the national economy,” he said.
Zulkarnain urged all parties to stop playing narrow sentiments and, instead, approach the issue in a more mature, fact-based and fair manner.
“Do not just look at the price at the pump. Look at who contributes, and who depends on diesel to live,” he said.
