Cutting fuel subsidies will cripple Sabah, Sarawak economic activities, says SAPP


KOTA KINABALU: Sabah Progressive Party (SAPP) urged Putrajaya to stop any further fuel subsidy rationalisation in east Malaysia, cautioning that any reduction would directly cripple economic activities across the region.

SAPP vice-president Gee Tien Siong said that subsidised RON95 at RM1.99 per litre and diesel at RM2.15 per litre remain lifelines for families who must travel vast distances without alternatives such as railways.

He said the upcoming T20 targeted subsidy rationalisation under the Budi95 programme was unacceptable, given that Sabah and Sarawak are the nation’s primary oil producers.

Gee warned that any fuel subsidy cut, whether through quota reductions or income‑based targeting, will trigger a direct drop in economic activity, as already evident in Sabah today.

He pointed out that the existing monthly 200‑litre cap already burdens families, as just three round-trip trips between Kota Kinabalu and Tawau — each 450km one way — exhaust the quota before the fourth week.

Similar depletion occurs on the over 300km routes between Kota Kinabalu–Sandakan or Sandakan–Tawau, he said in a statement on Monday (May 11).

“High fuel consumption in Sabah is not about preference for large vehicles, but the immense distances residents are forced to cover for daily needs,” Gee said.

He added that once the quota is exhausted, families are reluctant to travel further as unsubsidised fuel costs nearly double, leaving essential economic activities stranded for about 25 per cent of every month.

He urged Putrajaya to immediately scrap the 200‑litre limit, abandon the T20 cut plan, and guarantee that RM1.99 RON95 fuel remains permanent and unrestricted for all residents in Sabah and Sarawak.

While acknowledging the federal government’s fiscal squeeze, Gee said that Sabah’s constitutionally guaranteed 40% revenue entitlement remains unpaid, even during periods of national windfalls.

 

 

 

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SAPP , Budi95 , Fuel subsidy , Petrol , RON95

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