Kota Kinabalu: The Liberal Democratic Party (LDP) urged the Federal Government to introduce a special monthly subsidised fuel quota of 500 litres for motorists in Sabah and Sarawak, arguing that the two Bornean states face unique geographical and economic challenges.
LDP Bureau of Infrastructure and Utilities (Beaufras Bureau) head Peggy Liow said the proposal should be considered alongside the government’s planned implementation of a nationwide subsidised diesel quota of 200 litres a month, with an additional 100 litres available to eligible diesel vehicle owners from July 1.
She said Sabah and Sarawak should instead be given a higher allocation of 500 litres of either subsidised diesel or RON95 petrol per month.
“Our proposal is justified as both states are active oil and gas producers while the majority of the states in Peninsula Malaysia are not.
“Furthermore, in Sabah’s case, we continue to contribute 95% of our oil and gas revenue to the federal government purse via Petronas while Sabah retains the remaining 5% only of our oil and gas, revenue. In other words, Sabah and indeed Sarawak are oil and gas supplier territories.
“Hence, in return that it is fair that Sabahans and Sarawakians deserve a better fuel quota compared with the rest of the country,” Peggy said to Daily Express here, Sunday.
In addition to that, she said the federal government has yet to fully pay Sabah 40% revenue entitlement enshrined under the Federal Constitution.
According to her, the vast land area and geographical conditions of Sabah and Sarawak make private vehicle ownership, particularly four-wheel drives and pickup trucks, a necessity rather than a luxury.
“Our two states combined make up about 60% of Malaysia’s land area while the other 11 states in the Peninsula constitute the rest of the country’s land size.
“It is due to the comparative large size of Sabah and Sarawak, Sabah’s mountainous geography and Sarawak’s terrain of many fierce rivers have caused many people in the two states choose to own pick-ups and 4WD vehicles,” she said.
Peggy said many residents travel long distances daily, especially in rural areas where road conditions remain challenging and public transport options are limited.
“The fact is that getting from the rural areas to other parts of Sabah and Sarawak involve a lot of tough and rough roads.
“Compared with many better-developed urbanized states in the Peninsular Malaysia, Sabah and Sarawak are still considered very rural states with agriculture on micro to small, family-scale farms, land plots and small orchards dotting swathes of the rural areas,” she said.
Peggy also pointed to higher transportation costs in Sabah compared with Peninsular Malaysia, citing longer travel distances and higher ride-hailing fares as examples.
“Motorists in Peninsular Malaysia could cross several states within a day’s drive, whereas travelling across Sabah often requires similar travel times while remaining within the same state.
“While the North-South Expressway in Peninsular Malaysia had been completed decades ago, but the Pan Borneo Highway in Sabah is still under construction,” she said.
In terms of transportation fares, Peggy said travelling within towns in Sabah is more expensive compared with states in the Peninsular Malaysia.
“Distance and other factors are the reasons for the higher costs. To give a personal comparison two months ago, I took about 15 Grab rides in Georgetown, Penang. The average cost of my rides were RM4 to RM8 per ride.
“But Grab rides within Greater Kota Kinabalu easily cost me between RM14 to Rm22 per ride. In other words, we travel longer distances for work and living in Sabah and Sarawak“Also, when you are in the peninsula driving for nine hours, then you may have crossed three to five states. But in Sabah, long-drive for nine hours or longer would involve only one destination like from Kota Kinabalu to Semporna, Yet, you are still within a single state. Still in Sabah,” she said.
Peggy said she acknowledged the federal government’s concerns over fuel smuggling and abuse of subsidies but said these issues should not prevent Sabah and Sarawak residents from receiving a higher allocation.
“We understand the federal government’s predicament, concerns about the smuggling and abuse of subsidized fuel amidst the present world energy crisis.
“But, because of that, it is not practical to allow Sabahans and Sarawakians to have unlimited subsidized fuel,” she said.
Instead of unlimited subsidised fuel, Peggy said she proposed a capped monthly quota of 500 litres per MyKad holder, allowing consumers to purchase either subsidised diesel, RON95 or a combination of both based on their individual needs.
“Our proposal to the Federal Government is that both Sabah and Sarawak be allowed a special quota of 500 litres per month for every MyKad holder of subsidized fuel.
“It will then be up to the individual to choose to buy subsidized diesel or Ron95 or a combination of both. There will be no wastage because giving a higher quota still means Sabahans and Sarawakians have to buy subsidized fuel at the pumps. We buy according to what we need. No wastage,” she said.
Peggy also suggested that eligibility should also extend to non-Sabahans and non-Sarawakians who lawfully reside and work in the two states, with the subsidy administered through MyKad verification at fuel stations.
“The proposed mechanism for the 500L subsidized diesel or petrol must use MyKad at the location of purchase,” she added.
