KUALA LUMPUR: The federal government has maintained subsidised diesel prices in Sabah and Sarawak at RM2.15 per litre as part of efforts to ease the financial burden on people in both states.
The measure was announced in line with fuel subsidy restructuring efforts to address global energy price uncertainties while ensuring more sustainable national fiscal management.
“The MADANI government remains committed to ensuring the welfare of the people of Sabah and Sarawak is continuously safeguarded,” said Minister in the Prime Minister’s Department (Sabah and Sarawak), Datuk Mustapha Sakmud, in a press statement today.
According to him, access to subsidised diesel is retained with controlled usage to ensure the benefits reach targeted groups more effectively and comprehensively.
In addition, the BUDI95 initiative has been introduced at RM1.99 per litre, subject to a usage cap of 200 litres per month for eligible recipients.
“This approach takes into account the higher cost of living in Sabah and Sarawak compared to Peninsular Malaysia, particularly in logistics and transportation,” Mustapha said.
He explained that geographical factors and infrastructure limitations result in higher diesel usage in both states compared to other parts of Malaysia.
“The government understands the unique challenges in Borneo and ensures that every policy is formulated inclusively without neglecting the needs of those outside Peninsular Malaysia,” he added.
Meanwhile, he stressed that all parties, including consumers and industry players, must play their roles to ensure the smooth implementation of the subsidy.
“Cooperation from enforcement agencies is also crucial to prevent leakages and ensure the subsidy truly benefits those who need it,” he said.
He added that the targeted approach is part of the government’s effort to strengthen spending efficiency without compromising public welfare.
“This policy reflects the MADANI government’s concern in balancing fiscal needs with its social responsibility towards the people,” he reiterated.
He also expressed appreciation to the Prime Minister for giving serious attention to cost of living issues and development needs in Sabah and Sarawak.
“This decision proves that the government listens to the people and remains committed to ensuring the well-being of citizens in both states,” he concluded.
