Diesel price cap in Sabah, Sarawak eases burden on rural communities


KUCHING: The government’s decision to maintain diesel prices in Sabah and Sarawak has been welcomed by rural and inland communities who rely heavily on the fuel for their livelihoods.

On Thursday (March 26), Prime Minister Anwar Ibrahim announced that diesel prices in both states will remain at RM2.15 per litre, with a maximum purchase limit of 50 litres per transaction for private vehicles.

For smallholder farmer Jenta Beta, 55, who operates an oil palm plantation in the interior, diesel-powered four-wheel-drive vehicles are essential for transporting produce and travelling to nearby towns.

“If fuel prices rise without subsidies, we will be severely affected. These vehicles are not only for work but also for daily needs,” he said.

He added that most rural residents, particularly those in the B40 group, depend on diesel due to challenging road conditions and the nature of their work, making price stability crucial.

Contractor Ritchie Monde, 41, also expressed appreciation for the government’s understanding of rural realities.

"Without subsidies, the cost of essential goods will rise and put more pressure on low-income groups. Electric vehicles may be suitable for urban areas, but for rural and interior communities, they are still not practical,” he said.

Another farmer, Bejau Japang, 52, said the measure helps ensure smoother logistics, especially for those travelling between Sibu and other parts of central and northern Sarawak.

"Smallholders benefit greatly as transportation costs remain manageable, typically between RM50 and RM70, depending on distance. If diesel prices increase, logistics costs will rise and reduce our income,” he said, adding that it could also lead to higher prices of essential goods in interior areas such as Kapit, Belaga and coastal regions.

The move is seen as a crucial step in easing the cost of living for rural communities while maintaining the stability of supply chains in less accessible areas. – Bernama

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