KOTA KINABALU: The Federal Government’s decision to maintain diesel subsidy for Sabah is crucial in ensuring cost of goods remains stable amid surging global oil prices.
National Consumer Foundation Malaysia (YPNM) Sabah Chapter chairman David Chan said that the intervention reflects the government’s commitment to safeguarding the welfare of the people, particularly in Sabah where logistics and transportation costs are highly dependent on diesel fuel.
“The continued diesel subsidy is not just an economic measure, but a lifeline for many Sabahans,” he said Friday (March 20).
In expressing appreciation to the federal government under Prime Minister Datuk Seri Anwar Ibrahim, he said the intervention to maintain diesel prices at RM2.15 per litre for public transport and the land goods transport sector reflects the government’s commitment to safeguarding the welfare of the people at a time when open market prices surged to about RM4.75 per litre.
“YPNM acknowledges that the cost of living remains a pressing concern, especially for low- and middle-income groups. The continued subsidy has helped to stabilise transportation and distribution costs and reduce pressure on food prices and essential goods.
He said the subsidy also supports small businesses, farmers, and logistics operators while easing the financial burden on rural communities.
“Sabah’s geographical challenges and reliance on road and sea transport make fuel subsidies especially critical. Without such intervention, the ripple effect on the prices of goods and services would be significant,” Chan added.
He said YPNM also recognises the government’s efforts in implementing targeted subsidy mechanisms to ensure that assistance reaches those who truly need it, while maintaining fiscal responsibility.
“At the same time, Chan urged the government to continue towards strengthening, monitoring and enforcement to prevent abuse of subsidised diesel while enhancing transparency in subsidy distribution.
He said there was also a need to explore long-term solutions to reduce dependency on fossil fuels, including renewable energy initiatives in Sabah.
