The government continues diesel subsidies in Sabah and Sarawak to control transport and essential goods costs, amid global energy price hikes
KOTA KINABALU: The government is maintaining diesel subsidies in Sabah and Sarawak to prevent a surge in transportation, logistics, and essential goods costs.
Minister in the Prime Minister’s Department (Sabah and Sarawak Affairs) Datuk Mustapha Sakmud said this protection is vital for communities reliant on land and sea transport for supplies.
He cited global geopolitical tensions, including in West Asia, which are driving up world energy market prices and affecting local economic chains.
“The fact is, the government is currently bearing around RM3.2 billion every month for petrol and diesel subsidies,” he said in a statement.
He detailed that this includes roughly RM2 billion for RON95 petrol and RM1.2 billion for diesel monthly.
Mustapha said this demonstrates the government’s commitment to shielding citizens from global economic shocks.
The government is also maintaining the price of RON95 at RM1.99 per litre through the targeted BUDI MADANI subsidy.
This is compared to an estimated actual market price of RM2.67 per litre.
He noted that Malaysian fuel prices remain among the lowest in ASEAN.
Prices in neighbouring Thailand are around RM4 per litre, while Indonesia charges between RM3 and RM3.50.
Singapore’s prices range from RM8 to RM10 per litre.
Mustapha advised the public to understand the economic climate and use subsidies prudently.
“In this uncertain world, we must remain calm, not be influenced by speculation and continue to be united as Malaysians,” he said.
He added that the government will continue taking appropriate steps to ensure national economic stability.
