Kota Kinabalu: Parti Warisan Vice President Datuk Junz Wong urged both the Federal and Sabah governments to act before the sharp diesel price increases hitting Peninsular Malaysia begin to ripple through the State’s economy as well.
“Although Sabah’s regulated diesel price remains at RM2.15 per litre, the downstream effects of the Peninsula’s fuel cost surge are already beginning to strain national supply chains with consequences for consumers here a matter of when, not if,” said the Tanjung Aru Assemblyman in a statement.
He said businesses in Peninsular Malaysia have reported monthly diesel expenditure increases of up to RM100,000, with industry groups warning of potential price hikes of up to 50 per cent on essential goods and the possibility of some operators shutting down altogether.
“Sabah must not wait until the crisis hits our shores. When diesel prices spike, transport costs surge, supply chains tighten, and ultimately, ordinary consumers bear the brunt,” he said.
He noted that Sabah faces particular exposure due to its reliance on long-distance logistics and inter-regional supply networks.
“Any cost shock in the Peninsula will inevitably be transmitted here, often amplified,” he said.
He suggested for an immediate policy safeguards, emergency financial relief and strengthening supply chain resilience.
On pricing stability, he called for guarantees to maintain the RM2.15 diesel price for key sectors including food, construction and logistics and proposed engaging Petronas to direct a portion of oil and gas revenues into a dedicated Sabah Diesel Stabilisation Fund.
For financial relief, he urged Bank Negara to introduce loan moratoriums and low-interest working capital facilities for small and medium enterprises, alongside targeted grants and accelerated tax deductions to offset rising operational costs.
He also called for cross-industry logistics coordination and bulk procurement mechanisms to reduce inefficiencies, as well as support for digitalisation initiatives such as shared warehousing and inventory management to help stabilise pricing.
He said that inaction would fall hardest on lower and middle income households.
“This is not just a business issue … it is a consumer survival issue. When food prices rise by 20, 30 or even 50 per cent, it is the rakyat who suffer first and suffer most,” he said.
He said the combination of higher fuel costs, supply chain disruption and existing inflationary pressures could set off a cascading price effect across essential goods.
“Sabah contributes significantly to the nation’s energy wealth. It is only fair that our people are protected from the very shocks arising from that system. The time to act is now … not when businesses start closing and prices spiral out of control,” he said.
