Govt Has Valid Reasons For Not Implementing Diesel Subsidy In Sabah, Sarawak
Prime Minister Anwar Ibrahim stated in June of this year that Sabah and Sarawak were exempt from the recent rationalization of diesel subsidies due to their heavy reliance on the fuel, which made the reduction of subsidies unfeasible in comparison to Peninsular Malaysia, where diesel usage is less widespread.
The government allegedly received a writ of summons regarding the diesel subsidy exemption in Sarawak recently. According to Domestic Trade and Cost of Living (KPDN) Minister Datuk Armizan Mohd Ali, the government however has no intention of changing its stance on excluding those two countries from the implementation of the targeted diesel subsidy.
Armizan emphasized that there are specific, legitimate reasons why the targeted diesel subsidy has not been implemented in Sabah, Sarawak, and Labuan—not because of unfair treatment or double standards, Bernama has reported.
He clarified that a pilot implementation in Peninsular Malaysia was initially necessary due to the challenge of profiling to guarantee that aid reaches those who are truly in need.
-full_normal-full_normal.jpg)
He pointed out that the second reason has to do with Borneo's geography and logistics, where people are forced to use diesel-powered cars due to the region's topography rather than choice.
The third factor, he added, is the persistent and substantial price difference between Peninsular Malaysia and Sabah, Sarawak, and Labuan for goods.
"Recently, I presented a note to the Cabinet regarding monitoring conducted by our price observation officers. Over three months in July, August, and September we collected data on 480 items.
"We then compared the prices and found that 65 to 68 percent of these goods were significantly more expensive in Sabah and Sarawak than in Peninsular Malaysia," he said.
-full-full_normal-full_normal-(2)-full_normal.jpg)
For the record, on June 10 of this year, Peninsular Malaysia implemented diesel subsidy rationalization, which resulted in a rise in the retail price of diesel fuel to RM3.35 per litre. This is in contrast to the current subsidised price of RM2.15 per litre, which has been in place nationwide since February 2021 and is still applicable in East Malaysia.
Written By
Anis
Previously in banking and e commerce before she realized nothing makes her happier than a revving engine and gleaming tyres........
JPJ Running Numbers
KUALA LUMPUR
VRS2271
SELANGOR
BSU1401
JOHOR
JF384J
PULAU PINANG
PSF9490
PERAK
APL8039
PAHANG
CFH8716
KEDAH
KGJ3035
NEGERI SEMBILAN
NEM1410
KOTA KINABALU
SJU3520
KUCHING
QAB6589P
Last updated 30 Sep, 2026
Fuel Price
Petrol
RON 95
RM 3.97
+1.38
RON 97
RM 4.90
+1.75
RON 100
RM 7.20
+2.20
VPR
RM 8.23
+2.00
Diesel
EURO 5 B10
RM 5.12
+2.08
EURO 5 B7
RM 5.32
+2.08
Last updated 30 Apr, 2026
Related News
Targeted Diesel Subsidy Saves Government RM600mil Monthly - Anwar
The targeted diesel subsidy program has saved the government RM600 million per month since June 2024 by curbing misuse.
27-02-2025
Penang KPDN Confiscates 27,000 Litres Of Smuggled Diesel
Penang KPDN has foiled a diesel smuggling operation, seizing 27,000 gallons of subsidized diesel.
04-02-2025
3,500 petrol stations Lost RM181 million after diesel subsidy rationalisation - BUMIPEDA
Bumipeda claims that 3,500 petrol stations in the Peninsular have lost RM181 million following the diesel subsidy rationalisation by the govt.
19-12-2024
Diesel Subsidy Claims By Oil Companies Fall 51.6%
Oil companies' claims for diesel subsidies have dropped 51.6% in August compared to May.
23-10-2024
Govt firm in implementing diesel subsidy rationalisation despite criticisms - PM Anwar
Despite criticism, PM Anwar says the government must take practical measures regarding diesel subsidies.
26-09-2024
180K Commercial Vehicles Yet to Register for Diesel Subsidy
About 180,000 vehicles not yet registered for diesel subsidy due to being unsure of eligibility.
21-06-2024
Budi Madani: Est. 300K Owners Eligible, Over 30K Applications Approved
MoF estimates that up to 300,000 owners are eligible for the Budi Madani aid, while 30,000 applications have been approved.
06-06-2024
3,500 petrol stations Lost RM181 million after diesel subsidy rationalisation - BUMIPEDA
Bumipeda claims that 3,500 petrol stations in the Peninsular have lost RM181 million following the diesel subsidy rationalisation by the govt.
19-12-2024
Latest News
Why Extending The ECRL To Rantau Panjang Could Be A Much Bigger Deal Than It Sounds
The proposed ECRL extension to Rantau Panjang could link Malaysia with Thailand and a wider Asian rail and port network. Here's why it matters.
29-09-2026
Malaysia's First Locally Built EV And PHEV Pick-Ups Are Coming From JAC
JAC will locally assemble its T9 EV and PHEV in Kulim, creating Malaysia's first CKD electrified pick-ups, with exports also being explored.
29-09-2026
Nearly Half A Million Summonses To Foreign Drivers: JPJ Says Some Employers Are Enabling It
JPJ issued 481,119 summonses to foreign drivers from 2024 to Sept 2026, while warning that some employers and vehicle owners are enabling illegal driving.
29-09-2026
Why Is Malaysia's Finance Ministry Testing A GWM WEY G9? Here's What We Know
Malaysia's Finance Ministry is evaluating a locally assembled GWM WEY G9 PHEV with SPANCO. Here's what the government fleet trial actually means.
25-09-2026
Several Riders Skidded At The Same 'Anti-Skid' Lane. Here's What JKR Says
Several riders skidded on an 'anti-skid' Federal Highway motorcycle lane. JKR is investigating the surface, contamination and other possible factors.
25-09-2026
Only RM10K Separates The Two CKD iCAUR 03s - Here's What You Get
Both iCAUR 03 variants are now CKD in Malaysia. With just RM10,140 between the RWD and iWD, here's what the extra money gets you.
25-09-2026
JPJ Letting Rohingya Apply For Driving Licences? Here's The Fact Check
A viral post claims JPJ is proposing to let Rohingya apply for driving licences in Malaysia. JPJ says the claim is false and has reported it to MCMC.
24-09-2026
Going To Singapore From Oct 6? Check Your VEP Or Risk Getting Turned Back
Driving to Singapore from Oct 6? Foreign vehicles will face VEP checks during SG Arrival Card submission. Here's what Malaysian drivers need to know.
24-09-2026
Show More
trending_flat
