Kota Kinabalu: The Federal Government should review its proposed 200-litre monthly subsidised diesel quota for Sabah as it does not reflect the realities faced by many residents, according to Sabah DAP Chairman and Senator Phoong Jin Zhe.
The targeted diesel subsidy mechanism, scheduled for nationwide implementation from July 1, should not adopt a one-size-fits-all approach given Sabah’s geographical conditions and dependence on long-distance travel.
While supporting efforts to curb smuggling and subsidy leakages, Phoong argued that the policy must take into account Sabah’s unique circumstances.
Many Sabahans travel considerable distances daily for work, education, healthcare and other essential needs, particularly in rural and interior areas, where diesel consumption often exceeds the proposed quota.
A monthly allocation of 200 litres may be adequate in some parts of Peninsular Malaysia but is insufficient for many households in Sabah, he said.
Residents in districts such as Keningau, Tenom and Kota Marudu frequently travel long distances, including to Kota Kinabalu, making diesel a necessity rather than a convenience.
Phoong maintained that Sabah, as a less developed state, should continue to enjoy unlimited diesel subsidies and should benefit from its status as an oil-producing state.
He also raised concerns over public understanding of the new mechanism, particularly the distinction between subsidised diesel and diesel sold at market prices.
Questions remain over how different biodiesel blends will be treated and how future pricing structures will be implemented, he noted.
Clearer explanations are needed to prevent confusion once the mechanism comes into force.
Phoong further highlighted concerns over subsidy eligibility where vehicles are shared among family members or registered under the names of relatives.
Such arrangements are common in Sabah and could affect access to subsidised diesel if eligibility is tied strictly to vehicle ownership.
Failure to address these issues before implementation could lead to uncertainty among consumers, he said.
He revealed that he had already received enquiries from members of the public worried about their eligibility under the proposed framework.
Concerns were also raised over linking subsidies solely to vehicle ownership, which may not reflect the realities of rural Sabah.
Many residents depend on diesel generators, agricultural machinery and transport services despite not owning diesel vehicles.
According to Phoong, these groups risk being excluded if eligibility is based only on vehicle registration.
He also expressed concern about the impact on businesses, transport operators, agricultural enterprises and logistics companies that rely heavily on diesel.
Higher operating costs could eventually be passed on to consumers through increased prices for goods and services, he warned.
Phoong proposed a transition period of between three and six months, noting that many Sabahans still do not fully understand the mechanism or application process.
He also called on the Federal Government to review the 200-litre quota and consider additional allocations for Sabah and Sarawak, particularly for rural communities, long-distance commuters and agricultural operators.
Broader engagement with the Sabah Government, business groups, transport operators and grassroots organisations should be undertaken before the mechanism is implemented, he added.
