KOTA KINABALU: Diesel subsidies for Sabah and Sarawak have increased five to six fold following the global energy crisis triggered by the Middle East conflict, says Datuk Armizan Mohd Ali said.
“In January and February 2026, diesel subsidies borne by the government for Sabah and Sarawak amounted to RM103mil and RM106mil respectively.
“But after the conflict began, subsidies have risen to RM563mil in March and RM647mil in April,” said the Domestic Trade and Cost of Living Minister.
He said diesel subsidies for Sabah and Sarawak in the first four months of 2026 reached RM1.4bil compared to about RM2bil for the whole of last year.
Armizan, however, assured that the government will continue to bear the rising cost of diesel subsidies as long as global oil prices remain high and the energy crisis persists.
He urged goods and public land transport vehicles in Sabah, Sarawak and Labuan that qualify for diesel subsidies to register immediately under the subsidised diesel control system (SKDS) to ensure continued access to government assistance.
Speaking to reporters at the handover of PETRONAS SmartPay fleet cards to several goods transport companies approved under SKDS registration in Kepayan, he said using SKDS with fleet cards will be mandatory for obtaining diesel subsidies for the land transport sector on a date to be announced later.
He called on all companies with vehicles in the 33 eligible categories not to delay their applications to avoid disruption in receiving subsidised diesel.
“Through SKDS, eligible companies will receive diesel subsidies via the fleet card mechanism at RM2.15 per litre for the goods transport sector and RM1.88 per litre for the public transport sector,” he said.
Registration for SKDS in the goods transport sector in Sabah, Sarawak and Labuan opened on May 4, while the public transport sector has enjoyed targeted subsidies since June 2024.
As of June 14, a total of 8,060 companies involving 29,631 vehicles across Sabah, Sarawak and Labuan have registered under SKDS.
Armizan said the expansion of SKDS is part of the government’s effort to strengthen digital monitoring and enforcement of diesel subsidies to ensure aid reaches the intended groups and to reduce leakages.
He noted that fleet card usage enables more effective monitoring of subsidised diesel consumption, curbing smuggling, misappropriation and abuse of subsidies by irresponsible parties including foreigners and undocumented migrants.
In Sabah, the oil companies involved in SKDS implementation are PETRONAS, Shell and Petron.
