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
VRL8015
SELANGOR
BSS9814
JOHOR
JC7067J
PULAU PINANG
PSE8513
PERAK
APK7857
PAHANG
CFH4930
KEDAH
KGH6349
NEGERI SEMBILAN
NEL4984
KOTA KINABALU
SJT6099
KUCHING
QAB4256P
Last updated 21 Aug, 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
Immigration Driver Pleads Not Guilty After Running Red Light & Killing Father And Two Daughters
Immigration driver Mohd Akbar Zainol pleads not guilty to 5 charges after running a red light in KL, hitting a car, and killing 3 pedestrians.
20-08-2026
PDRM Is Spending RM8 Million On Silent E-Bikes For Border Patrols: Here’s What They Can Do
PDRM receives 375 silent tactical e-bikes worth RM8M! Discover how the 850Nm torque Jebatt F29 will stop border smuggling.
20-08-2026
Immigration Truck Runs Red Light In KL: Father & 2 Daughters Killed, Mother In Red Zone
3 family members were killed after an Immigration truck ran a red light and crashed at Maju Junction, KL. Get the latest police details and investigation updates.
19-08-2026
‘We Need RM4B, Only Got RM2B’: Ahmad Maslan Explains Why Highways & Potholes Stay Dark And Damaged
Works Ministry receives only RM2B of its required RM4B road maintenance budget. Ahmad Maslan explains why potholes, dark highways, and repairs are delayed in Malaysia.
19-08-2026
A Bangladeshi Farmer Was Caught Delivering Veggies In A Mercedes: The Langkawi Duty-Free Loophole
Discover why a Bangladeshi farmer used a Mercedes to haul vegetables in Langkawi. Learn how duty-free taxes, extreme depreciation, and repair traps create cheap island luxury cars.
18-08-2026
The Billionaire Who Saved Proton Just Resigned As Geely Chairman—Here’s What’s Happening
Geely founder Li Shufu resigns as Chairman of Geely Auto! Here is what the major executive shakeup means for Proton and Geely's global strategy.
18-08-2026
"We Pay Roadtax" — RXZ Organiser Defends LPT Highway Closure By Comparing Convoy To Marathons
RXZ Members organisers defend their LPT highway closure proposal using marathon comparisons following 46 crashes, 11 deaths, and 1,800 summonses at Edition 8.0.
17-08-2026
"RM100M Feels Like RM50M Now": Tun M Urges Malaysia To Buy Back Formula 1 Hosting Rights
Tun Dr Mahathir urges Malaysia to buy back Formula 1 hosting rights for Sepang, arguing RM100M is affordable today. Read his podcast comments and cost breakdown.
13-08-2026
Show More
trending_flat
