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
VQA1670
SELANGOR
BSK1843
JOHOR
JYL1383
PULAU PINANG
PRV6791
PERAK
APC5129
PAHANG
CFE1594
KEDAH
KGC9859
NEGERI SEMBILAN
NEH5987
KOTA KINABALU
SJN6643
KUCHING
QAB5170M
Last updated 14 Nov, 2025
Fuel Price
Petrol
RON 95
RM 2.65
+0.05
RON 97
RM 3.25
+0.05
RON 100
RM 5.00
VPR
RM 6.23
Diesel
EURO 5 B10
RM 3.07
+0.05
EURO 5 B7
RM 3.27
+0.05
Last updated 13 Nov, 2025
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
BYD Sees 2025 YTD Sales Total Reach 11,097 Units – 70% YoY Up From 2024
BYD Cars Malaysia discloses its 2025 YTD toral sales have reached 11,097 units, marking a 70% YoY increase from 2024.
14-11-2025
KLIA Aerotrain To Stop Nightly From Nov 15 For Reliability Upgrades
KLIA’s Aerotrain will be suspended nightly from 9PM to 7AM starting Nov 15 for reliability upgrades.
14-11-2025
Kelana Jaya LRT Weekend Disruptions For Upgrades
Rapid KL will upgrade the Kelana Jaya Line signalling system on Nov 15–16 and 29–30.
14-11-2025
GWM Malaysia Accelerates Localisation Drive To Strengthen Supply Chain
GWM Malaysia strengthens local partnerships and production to support the nation’s new-energy mobility ambitions.
14-11-2025
Upgraded Mitsubishi Eon Auto Mart 3S Centre Reopens in Melaka
Mitsubishi Motors Malaysia, together with Eon Auto Mart, announces the relocation and upgrade of its outlet in Melaka.
14-11-2025
PLUS Implements Night Contra-Flow On Elite Highway For Pipe Work
Motorists on the Elite Highway should expect a contra-flow from Nov 17–20 for pipe work.
14-11-2025
Flat Rate, Rule of 78, Reducing Balance: How Hire-Purchase Loans Really Work
We break down a RM100,000 loan over seven years to show how reducing balance interest saves you money.
14-11-2025
Genting Highlands Set To Introduce Vehicle Fee to Boost Safety
Motorists heading to Genting Highlands will soon pay a fee to fund maintenance and safety on the 24 km private road.
13-11-2025
Show More
trending_flat