DIESEL SUBSIDY STABILISES LOGISTICS COSTS, EASES PRICE PRESSURE IN SABAH

KOTA KINABALU, March 27 (Bernama) -- The government’s decision to maintain diesel subsidies in Sabah has been described as a crucial move to protect public welfare, particularly amid high living costs and logistical challenges in the state.

Sabah’s National Consumer Foundation Malaysia (YPNM) chairman David Chan said the move reflects the government’s commitment to protecting public welfare in a state dependent on land and sea transport.

He said maintaining diesel subsidies at RM2.15 per litre for public transport and freight helps keep transport and distribution costs stable.

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“The diesel subsidy isn’t just an economic measure; it is a crucial lifeline for many in Sabah. YPNM notes that the high cost of living remains a major challenge, especially for low- and middle-income households.

“Continuing the subsidy helps keep transport and distribution costs stable, while easing the burden on food and essential goods,” he told Bernama today.

Chan also thanked the federal government, led by Prime Minister Anwar Ibrahim, for the decision, noting that open market diesel prices have risen to about RM5.52 per litre.

He said YPNM supports the targeted subsidy to aid those in need while upholding fiscal responsibility.

Meanwhile, Putatan goat farmer Jason Lee, 49, said diesel subsidies are vital for agriculture and livestock, as high fuel costs would drive up production and market prices.

He said Sabah’s uneven roads, including rocky, unpaved, and hilly routes, make four-wheel-drive vehicles essential, especially in rural areas.

“For example, a 400-kilometre drive from Kota Kinabalu to Sandakan can take six to seven hours.

“Therefore, heavy reliance on four-wheel-drive vehicles and diesel trucks makes fuel subsidies essential for daily life and local economic activity,” he said.

Former Sabah footballer Rosdy Wasli called for diesel subsidies to be viewed as a necessity, not a political issue, for Sabah and Sarawak.

“In today’s tough global economy, we should respect the needs of each region and not turn this into a political issue.

“The government has considered the risk of excessive diesel use or overconsumption in Sabah and Sarawak, and this effort is aimed at supporting the people in both states,” he said.

Yesterday, Anwar announced that diesel in Sabah and Sarawak will stay at RM2.15 per litre, with per-purchase limits of 50 litres for light vehicles, 100 litres for public transport and goods vehicles up to three tonnes, and 150 litres for vehicles over three tonnes.

-- BERNAMA