Sabah Deserves Diesel Subsidy: Ewon

27 March 2026

KOTA KINABALU: Deputy Chief Minister III and Minister of Industrial Development, Entrepreneurship and Transport of Sabah, Datuk Ewon Benedick, has affirmed that Sabah is entitled to a diesel subsidy, given that the state is one of the country's major oil and gas producers.

He stated that revenue from Sabah's oil and gas has long contributed to the development of other states without such resources.

"We appreciate the Federal Government's decision to grant Sabah a diesel subsidy. I was involved in making that decision when I was still in the Federal Cabinet."

"We defended that decision because Sabah is a state, or region, that produces gas and oil. I have consistently said that oil and gas revenue from Sabah and other producing states has subsidised development in several other states that do not produce gas and oil."

"That's why Sabah deserves its return, not just for development, but also to ensure those resources are used for domestic needs in Sabah," he said.

He said this to reporters after delivering a speech at the UPKO Putatan Hari Raya Aidilfitri celebration at Dewan Sri Putatan yesterday.

Ewon, who is also UPKO President, said it is time for the Federal Government to prioritise domestic needs, especially in resource-producing states.

"In my view, it is time for the Federal Government to review how to prioritise domestic requirements. As a region that produces and contributes oil and gas revenue, Sabah deserves to get its returns from those resources," he said.

Commenting on the reduction of the diesel subsidy quota from 300 to 200 litres, he said the federal government needs to provide further explanation on the move, while acknowledging that conflicts in West Asia are affecting global oil prices.

"It is true that the war is impacting world oil prices, but perhaps it is time for Malaysia to consider how oil extracted from this country is used for domestic needs," he said.

He also voiced public concerns over potential disruptions to supplies of basic goods, particularly food, which rely heavily on sea transport.

"It's not just industrial players; the public is also worried about daily food supplies because main sea transport has been affected."

"That's why we send a message of cooperation through celebrations like this. In countries far from here, wars are happening due to differences," he said.

He noted that politically, Sabah, Sarawak, and Peninsular Malaysia do have differences and unfulfilled rights claims.

Nevertheless, he said those demands do not undermine the spirit of cooperation between regions in Malaysia.

He also questioned those challenging the diesel subsidy for Sabah.

"If anyone questions it, first ask who produces that gas and oil. Sabah is the producer and deserves to know what is returned to its people."

"Since the Petroleum Development Act was enforced, Sabah has lost its biggest resource: gas and oil. I defend the decision to provide diesel subsidies and other necessary subsidies for Sabah's people because we truly deserve them."

"We have already subsidised development elsewhere, so return what Sabah should have received, which has been lost since certain acts were introduced, especially the Petroleum Development Act," he said.

Regarding the UPKO Putatan branch's Hari Raya Aidilfitri celebration, Ewon said it is part of the party's tradition of celebrating major festivals across Sabah's diverse communities.

According to him, such open houses reflect efforts to foster unity and mutual respect among the people.

"This is how we nurture togetherness and strengthen the spirit of cooperation among communities of diverse backgrounds," he said.