KUCHING: Sarawak’s unique geographical needs and major contribution to Malaysia’s petroleum economy warrant a review of federal fuel subsidy mechanisms, says MBKS councillor Eric Tay Tze Kok.
He said the increase in the BUDI Diesel subsidy allocation to 400 litres from Sept 1 should not be regarded as the final solution.
“Given that Sarawak is one of the country’s major oil-producing regions, I believe it is not unreasonable to call on the federal government to restore an unlimited diesel subsidy mechanism for Sarawak,” he said in a press statement on Tuesday (Sept 1).
He said Sarawak’s diesel and petrol subsidy issue should not be viewed merely based on whether the monthly allocation was 300, 400 or 500 litres.
He said the federal government should consider Sarawak’s petroleum contribution, vast geographical area and higher transportation requirements when formulating nationwide fuel policies.
“According to federal government data, Malaysia’s upstream petroleum revenue from 2018 to 2024 totalled approximately RM775.2 billion, with Sarawak contributing about RM285.4 billion.
“Given this contribution, the federal government should recognise Sarawak’s actual circumstances rather than treating fuel subsidy policies solely through a nationwide approach.”
He said Sarawak’s long distances between urban and rural areas meant many residents depended heavily on vehicles for work, business, agriculture and daily activities.
“Sarawak is geographically vast, with long distances between urban and rural areas, while diesel vehicles are widely used in agriculture, transportation, construction and businesses.”
He also questioned whether the additional 100 litres would automatically benefit every eligible diesel vehicle owner, noting that some applicants still needed approval through BUDI MADANI.
“An additional 100 litres is one thing. Whether the people can obtain those additional 100 litres conveniently is another matter.”
He urged the federal government to ensure the application process remained simple, transparent and accessible, particularly for people genuinely dependent on diesel vehicles for their livelihoods.
He also said the issue should not become a political dispute between parties, following DAP chairman Chong Chieng Jen’s questions over whether GPS ministers had raised the matter in Cabinet.
“BUDI Diesel is a federal government policy, and the relevant fiscal and policy arrangements are the responsibility of the federal government.”
Tay said Sarawakians were more concerned about whether the final policy addressed their actual needs than seeing political parties shift responsibility over the subsidy issue.
“What Sarawakians need is a long-term, stable and locally appropriate policy, not a subsidy system in which the quota is constantly adjusted.”
