KOTA KINABALU: It is possible that fuel prices will be standardised nationwide and Sabahans must be prepared for an increased cost of living if the West Asian conflict continues to escalate, says Datuk Masiung Banah.
The Sabah Economic Development Corporation (Sedco) Group chairman said that due to current global uncertainties, increasing prices of goods and services cannot be avoided, especially fuel.
He said the approach of maintaining oil subsidies as a whole is no longer a sustainable option given the limits of the government's financial capacity.
The Kuamut assemblyman said this to the media after officiating a ceremony at Kampung Kuala Keramuak in Tongod on Sunday (April 12).
"If the global economic crisis lasts and the war between Iran and America/Israel becomes more tense, then it is not surprising that petroleum prices in Sabah, Sarawak and the Peninsula will be standardised," Masiung stressed.
"The increase in world oil prices will certainly lead to an increase in the price of daily necessities, especially imported goods."
He predicts that oil subsidies for the people of Borneo might be frozen if the government's financial situation becomes more limited.
"We must be prepared for the increase in the cost of living due to the uncertainty of the global economy, because that situation cannot be avoided," Masiung warned while advising a change in lifestyle by adopting frugal spending habits.
He said current estimates show petrol and diesel subsidies across the country amounting to around RM6bil a month compared to RM700mil before the global energy conflict.
He explained that the subsidy cost for Sabah and Sarawak is RM383mil per month or RM4.5bil annually.
Meanwhile, oil prices in the Peninsula for the period from April 9 to April 15 saw an increase where RON95 cost RM4.17 per litre and RON97 RM5.35 per litre, each increased by RM0.40.
The price of diesel in the Peninsula jumped to RM6.72 per litre, a drastic increase of RM0.70, Masiung said.
Currently, the price of diesel in Sabah, Sarawak and Labuan remains at RM2.15 per litre and subsidised RON95-Budi remains at RM1.99 per litre.
