Maintaining diesel at RM2.15 in Sabah and Sarawak is a necessity, not a privilege

27 March 2026

KOTA KINABALU: Sabah DAP Deputy Chairperson Chan Foong Hin has welcomed the decision by Prime Minister Anwar Ibrahim to maintain the diesel subsidy in Sabah and Sarawak at RM2.15 per litre, despite prices rising to RM5.52 per litre in Peninsular Malaysia.

He said the move reflects a clear understanding of the unique challenges faced in East Malaysia, where geographical conditions, infrastructure gaps and logistical constraints make diesel not merely an option but a necessity—particularly in rural and interior areas reliant on diesel-powered transport.

“Maintaining the subsidised price should not be misconstrued as a privilege, but recognised as a necessary measure that reflects the distinct realities in Sabah and Sarawak,” he said in a statement today.

Chan noted that higher transportation costs in both states have already contributed to elevated prices for goods and services.

Any increase in fuel prices, he added, would have a direct impact on daily life, affecting households, small businesses and local economic activity.

He pointed out that the Prime Minister had disclosed diesel subsidies for Sabah and Sarawak amounted to RM2 billion in 2025 and have risen to RM4.6 billion this year, underscoring the MADANI Government’s commitment to balanced and inclusive national development.

Chan also highlighted the broader global context, noting that ongoing tensions in the Middle East continue to affect energy supply, particularly along strategic routes such as the Strait of Hormuz.

He expressed appreciation for the Prime Minister’s diplomatic engagement with Iranian President Masoud Pezeshkian, which has ensured the safe passage of Malaysian vessels through the critical waterway.

“This demonstrates Malaysia’s proactive approach in navigating current global uncertainties,” he said.

While acknowledging the importance of the subsidy, Chan cautioned that the cost of living remains closely tied to global developments. He urged the public to remain vigilant and prepared for potential fluctuations in energy prices.

He stressed that the policy should not be politicised, describing it as part of a broader national effort to address regional disparities and ensure equitable development.

“Stability in Sabah and Sarawak is vital to the overall strength and unity of Malaysia,” he added.