Link Copiedcheck_circle
Auto News

Govt Has Valid Reasons For Not Implementing Diesel Subsidy In Sabah, Sarawak

Anis

Share via

Untitled-design---2024-09-26T101612.719-full-(2).jpg 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.

1-(1)-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.

kpdn-fuelsale-foreigncar-33-full-full-(2)-full-full_normal-full_normal-(2).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.


Tagged:

targeted diesel subsidy
diesel subsidy rationalisation
Ministry of Domestic Trade (KPDN)
KPDN Minister YB Datuk Armizan Mohd Ali
Share This Article

Written By

Anis

Previously in banking and e commerce before she realized nothing makes her happier than a revving engine and gleaming tyres........

Share via

Related News

Auto 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
Auto News

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
Auto News

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
Auto News

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
Auto News

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
Auto News

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.

Auto News

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
Auto News

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

Auto News

KPDN Probes SG Driver Sighted Pumping RON95 in Johor

KPDN is probing a viral incident where a Singapore-registered car was seen pumping subsidised RON95 fuel.

Auto News

Traffic Diversion On Bukit Gambir-Tangkak From Aug 5

Traffic along the NSE near Tangkak will be diverted in both directions from Aug 5 for bridge construction.

04-08-2025
Auto News

1,489 Summonses Issued in VEP Enforcement Operation – JPJ

JPJ has issued a total of 1,489 summonses during an enforcement operation on VEP at the JB-Singapore land border.

04-08-2025
Auto News

No Green Light Yet For Cross-Border Ride-Hailing Between SG, JB.

Singapore holds off on cross-border ride-hailing plans, opting instead to improve its existing taxi scheme with Malaysia.

04-08-2025
Auto News

RM110 Million Collected from Special Plate Sales Since 2023 – MoT

A total of RM110 million has been collected from sales of special number plates since 2023, the Transport Ministry says.

04-08-2025
Auto News

Nanta: 80% of Accidents Driver-Linked, Road Budget 70% Short

With 80% of accidents linked to drivers, the Works Ministry still grapples with limited funds to fix and rebuild roads.

Auto News

LRT3 Shah Alam Line Opening Could Be Delayed to Oct 31 – Report

The LRT3 Shah Alam line opening could be delayed until Oct 31 instead of the planned launch date of Sept 30.

04-08-2025
Auto News

ETS to JB Sentral ‘On Track’, But Not Quite There Yet

KTMB says electrification works between Kluang to JB Sentral are ongoing and the extension will proceed once conditions are met.