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DESPITE rising global inflation and surging crude oil prices triggered by unrest in the Middle East, the Government has reaffirmed its commitment to maintaining subsidised fuel prices for public transport and selected goods.
The Domestic Trade and Cost of Living Ministry explained today that this is achieved through the Diesel Subsidy Control System (SKDS) and the Petrol Subsidy Control System (SKPS), which ensure eligible vehicles can access fuel at predetermined subsidised rates via fleet cards.
Under the scheme, diesel for goods transport is priced at RM2.15 per litre, while diesel for public transport is set at RM1.88 per litre, while, Petrol RON95 for both public transport and selected goods vehicles is maintained at RM2.05 per litre.
The government emphasises that this move is critical to prevent operating costs in the transport sector from escalating, thereby safeguarding the affordability of goods and services for all Malaysians.
Vehicle owners are encouraged to verify their eligibility for the programme through the official portal at [https://mysubsidi.kpdn.gov.my](https://mysubsidi.kpdn.gov.my).
The approach has received support from the Sabah branch of the Chartered Institute of Logistics and Transport Malaysia (CILTM), which highlighted the unique logistics challenges faced in East Malaysia.
CILTM Sabah Chairman Daniel Doughty explained that the region operates under fundamentally different supply chain conditions, with fuel distribution costs considerably higher due to geographical constraints, decentralised networks, and smaller economies of scale.
“Fuel distribution in Sabah involves a multi-modal logistics chain, from refineries to major ports, then to secondary ports, and finally to scattered inland areas, in contrast to the more integrated and high-volume systems in Peninsular Malaysia,” Bernama reported Doughty saying today.
“Industry observations show that logistics and distribution costs in Sabah can be two to three times higher per litre, driven by reliance on multiple transport stages, lower handling volumes at each node, and higher last-mile delivery costs in rural and interior locations.
“This is an inherent structural reality in Sabah’s logistics landscape.”
He added that the federal pricing mechanism accounts for these cost dynamics to prevent businesses and consumers from bearing disproportionate burdens.
Without such calibration, the additional costs arising from complex logistics would inevitably ripple throughout the supply chain, potentially destabilising the wider economy.
“Fuel pricing plays a critical role in controlling cost pressures, particularly in sectors heavily reliant on diesel. The current pricing approach functions as a stabilising mechanism within the broader national economic framework, ensuring essential goods, construction activities, and small and medium enterprises, especially in rural areas, remain sustainable,” Doughty added.
He stressed that policies reflecting regional cost structures are essential to achieve balanced development across the federation.
Uniform pricing that ignores these differences could lead to uneven economic outcomes.
According to Doughty, diesel pricing in East Malaysia represents necessary economic adjustments aligned with national policy objectives and highlights the importance of public understanding of logistics cost structures in shaping effective and equitable policy. - March 29, 2026
