Diesel subsidy for Sabah, Sarawak reflects reality, says DAP’s Chan

2026-03-27 - 13:31

Chan Foong Hin of Sabah DAP said the decision to keep the diesel price at RM2.15 per litre recognised the unique challenges faced in East Malaysia. (Bernama pic) PETALING JAYA: Sabah DAP deputy chairman Chan Foong Hin has welcomed the government’s decision to maintain diesel prices at RM2.15 per litre in Sabah and Sarawak, saying the subsidy reflects reality rather than preferential treatment. Chan, who is MP for Kota Kinabalu, said the move recognises the unique challenges faced in East Malaysia, including the geographical conditions, infrastructure gaps, and a heavy reliance on diesel-powered transport, particularly in rural and interior areas. “In Sabah and Sarawak, higher transport costs already lead to higher prices for goods and services. Any increase in fuel prices would directly affect daily life, including households, small businesses, and local economic activities,” he said in a statement today. Chan noted that diesel subsidy spending rose from RM2 billion in 2025 to RM4.6 billion this year, reflecting the government’s commitment to balanced development. The diesel price is currently RM2.15 per litre in Sabah and Sarawak, less than half the Peninsular Malaysia price of RM5.52 per litre. Yesterday, the opposition Perikatan Nasional coalition criticised the difference, saying it risked creating the perception of injustice towards consumers and businesses in Peninsular Malaysia. Chan, a former federal deputy minister, welcomed the decision by Prime Minister Anwar Ibrahim to retain the subsidised rate of RM2.15 per litre for East Malaysia. Chan said the subsidy was part of a broader national effort to address regional disparities. It should not be seen as preferential treatment, “but as a necessary measure to ensure equitable development across regions with very different challenges”, he said. Recently, Sabah Umno veteran Salleh Said Keruak said that both Sabah and Sarawak had structurally higher costs with logistics dependent on long-distance transport, whether by road or sea. He said this meant that supply chains were more complex and expensive, particularly in rural areas. From April 1, Putrajaya will limit diesel purchases in East Malaysia according to different categories of vehicles due to concerns over stockpiling and smuggling.