Kota Kinabalu: Borneo Advocacy for Social Empowerment (Base) has urged the Federal Government to review the implementation of the Subsidised Diesel Control System (SKDS) in Sabah, saying rising logistics costs are contributing to higher prices of essential goods.
Base Chairman Pritchard Gumbaris (pic) said calls for traders to keep chicken and egg prices reasonable following the removal of subsidies and price controls are insufficient if businesses continue to face higher operating costs.
He said many logistics operators, transporters and small businesses have experienced increased diesel costs, administrative hurdles and delays under SKDS, adding that industry feedback indicated transportation costs have risen by between eight and 20 per cent depending on operations and delivery routes.
Pritchard said the higher logistics costs have affected the prices of chicken, eggs and other essential goods, while arguing that Sabah's geographical and economic conditions require policies tailored to the State rather than a "one-size-fits-all" approach.
He called on the Government to simplify and expedite subsidy applications for genuine operators, widen eligibility where appropriate, engage regularly with industry stakeholders and consider targeted freight assistance for essential goods, while maintaining enforcement against diesel smuggling and subsidy leakages.
