Monday, 13 April 2026

Diesel policy reflects regional realities

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Wong

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KUCHING: A uniform fuel pricing policy would fail to reflect the realities of Sabah and Sarawak, where diesel remains essential for transport, electricity and rural livelihoods across vast interior regions.

Bernama chairman Datuk Seri Wong Chun Wai said differences in diesel pricing between the peninsula and the Bornean states must be understood in the context of geography, infrastructure gaps and reliance on diesel-powered transport and electricity in remote communities.

“The most fundamental misunderstanding lies here: in Sabah and Sarawak, diesel is not just another fuel option. It is the backbone of daily life,” he said.

He noted that the federal government itself has acknowledged diesel is used “comprehensively” in the two states, explaining why subsidy rationalisation measures have so far been confined to Peninsular Malaysia.

“In remote villages in Borneo, generators still supply the electricity. In many areas, there is simply no alternative,” he said, adding that policymakers recognise that “nearly every boat and vehicle relies heavily on diesel”.

Wong stressed that the scale and geography of Sabah and Sarawak further shape fuel dependency patterns.

Sarawak alone has more than 5,000 villages spread across a landmass comparable to Peninsular Malaysia, while Sabah’s territory is similarly vast, with constituencies such as Keningau larger than several peninsula states combined.

“What the people face there are not inconveniences. They are structural realities,” he said, noting that diesel-powered four-wheel-drive vehicles are “a necessity, not a luxury” in many rural areas.

He added that logistics remains another frequently overlooked factor in discussions about fuel pricing.

Much of the food, construction materials and consumer goods used in Sabah and Sarawak are transported from the peninsula before continuing inland by sea, road or river.

“Every step of that journey depends heavily on diesel,” he said.

Wong warned that floating diesel prices would sharply increase transport costs and push up prices of essential goods, with rural communities likely to face the greatest impact.

He said subsidies therefore help stabilise the cost of living in regions where incomes are generally lower and supply chains remain fragile.

While calls for uniform fuel pricing may appear fair in principle, he said they overlook unequal starting points between regions.

Peninsular Malaysia benefits from dense highway networks, broader access to petrol-powered vehicles, more developed public transport systems and stronger electricity grid coverage, advantages not yet available at the same scale in Sabah and Sarawak.

Attempting to impose identical fuel policies nationwide, he added, could deepen disparities rather than reduce them.

“The story of Sabah and Sarawak is not about inequality. It is a story about geography, necessity, and the realities of a country that is far more diverse than many urban Malaysians appreciate,” he said.

He added that diesel-powered boats and four-wheel-drive vehicles remain more economical for long-distance rural use because they can operate longer than petrol-powered alternatives.

“That basically explains why a ‘one Malaysia, one price’ policy cannot work as we face the challenges of fuel price increases,” he said.

“Rural Sabah and Sarawak are not the same as the highly urbanised peninsula.”

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