KOTA KINABALU: The government will maintain subsidised diesel in Sabah and Sarawak due to geographic factors and higher domestic diesel usage.
Datuk Armizan Mohd Ali, Minister of Domestic Trade and Cost of Living, said the decision considers the heavy reliance on diesel for electricity, transport, and small machinery operations in both states.
He explained that Sabah and Sarawak’s geography leads to greater household diesel consumption than in Peninsular Malaysia.
The subsidy also addresses persistent price gaps of goods between the Borneo states and the Peninsula.
Armizan added that the move follows careful government deliberation, despite recent fuel price adjustments nationwide, and responds to questions from some in Peninsular Malaysia over the continued subsidy in the two states.
