ENZHMS
Link Copiedcheck_circle
Auto News

Govt Has Valid Reasons For Not Implementing Diesel Subsidy In Sabah, Sarawak

Anis

Share via

Untitled-design---2024-09-26T101612.719-full-(2).jpg Prime Minister Anwar Ibrahim stated in June of this year that Sabah and Sarawak were exempt from the recent rationalization of diesel subsidies due to their heavy reliance on the fuel, which made the reduction of subsidies unfeasible in comparison to Peninsular Malaysia, where diesel usage is less widespread.
The government allegedly received a writ of summons regarding the diesel subsidy exemption in Sarawak recently. According to Domestic Trade and Cost of Living (KPDN) Minister Datuk Armizan Mohd Ali, the government  however has no intention of changing its stance on excluding those two countries from the implementation of the targeted diesel subsidy.

Armizan emphasized that there are specific, legitimate reasons why the targeted diesel subsidy has not been implemented in Sabah, Sarawak, and Labuan—not because of unfair treatment or double standards, Bernama has reported.

He clarified that a pilot implementation in Peninsular Malaysia was initially necessary due to the challenge of profiling to guarantee that aid reaches those who are truly in need.

1-(1)-full_normal.jpg

He pointed out that the second reason has to do with Borneo's geography and logistics, where people are forced to use diesel-powered cars due to the region's topography rather than choice.

The third factor, he added, is the persistent and substantial price difference between Peninsular Malaysia and Sabah, Sarawak, and Labuan for goods.
"Recently, I presented a note to the Cabinet regarding monitoring conducted by our price observation officers. Over three months in July, August, and September we collected data on 480 items.

"We then compared the prices and found that 65 to 68 percent of these goods were significantly more expensive in Sabah and Sarawak than in Peninsular Malaysia," he said.

kpdn-fuelsale-foreigncar-33-full-full-(2)-full-full_normal-full_normal-(2).jpg
For the record, on June 10 of this year, Peninsular Malaysia implemented diesel subsidy rationalization, which resulted in a rise in the retail price of diesel fuel to RM3.35 per litre. This is in contrast to the current subsidised price of RM2.15 per litre, which has been in place nationwide since February 2021 and is still applicable in East Malaysia.


Share This Article

Written By

Anis

Previously in banking and e commerce before she realized nothing makes her happier than a revving engine and gleaming tyres........

Share via

JPJ Running Numbers

KUALA LUMPUR

VRG3376

SELANGOR

BSR6302

JOHOR

JA3634J

PULAU PINANG

PSD8219

PERAK

APJ8703

PAHANG

CFH1749

KEDAH

KGH1266

NEGERI SEMBILAN

NEK9358

KOTA KINABALU

SJT1146

KUCHING

QAB2079P

Last updated 17 Jul, 2026

Fuel Price

Petrol

RON 95

RM 3.97

+1.38

RON 97

RM 4.90

+1.75

RON 100

RM 7.20

+2.20

VPR

RM 8.23

+2.00

Diesel

EURO 5 B10

RM 5.12

+2.08

EURO 5 B7

RM 5.32

+2.08

Last updated 30 Apr, 2026

Related News

Auto News
Targeted Diesel Subsidy Saves Government RM600mil Monthly - Anwar

Targeted Diesel Subsidy Saves Government RM600mil Monthly - Anwar

The targeted diesel subsidy program has saved the government RM600 million per month since June 2024 by curbing misuse.

27-02-2025
Auto News
Penang KPDN Confiscates 27,000 Litres Of Smuggled Diesel

Penang KPDN Confiscates 27,000 Litres Of Smuggled Diesel

Penang KPDN has foiled a diesel smuggling operation, seizing 27,000 gallons of subsidized diesel.

04-02-2025
Auto News
3,500 petrol stations Lost RM181 million after diesel subsidy rationalisation - BUMIPEDA

3,500 petrol stations Lost RM181 million after diesel subsidy rationalisation - BUMIPEDA

Bumipeda claims that 3,500 petrol stations in the Peninsular have lost RM181 million following the diesel subsidy rationalisation by the govt.

19-12-2024
Auto News
Diesel Subsidy Claims By Oil Companies Fall 51.6%

Diesel Subsidy Claims By Oil Companies Fall 51.6%

Oil companies' claims for diesel subsidies have dropped 51.6% in August compared to May.

23-10-2024
Auto News
Govt firm in implementing diesel subsidy rationalisation despite criticisms - PM Anwar

Govt firm in implementing diesel subsidy rationalisation despite criticisms - PM Anwar

Despite criticism, PM Anwar says the government must take practical measures regarding diesel subsidies.

26-09-2024
Auto News
180K Commercial Vehicles Yet to Register for Diesel Subsidy

180K Commercial Vehicles Yet to Register for Diesel Subsidy

About 180,000 vehicles not yet registered for diesel subsidy due to being unsure of eligibility.

Auto News
Budi Madani: Est. 300K Owners Eligible, Over 30K Applications Approved

Budi Madani: Est. 300K Owners Eligible, Over 30K Applications Approved

MoF estimates that up to 300,000 owners are eligible for the Budi Madani aid, while 30,000 applications have been approved.

06-06-2024
Auto News
3,500 petrol stations Lost RM181 million after diesel subsidy rationalisation - BUMIPEDA

3,500 petrol stations Lost RM181 million after diesel subsidy rationalisation - BUMIPEDA

Bumipeda claims that 3,500 petrol stations in the Peninsular have lost RM181 million following the diesel subsidy rationalisation by the govt.

19-12-2024

Latest News

Auto News
7 Countries With Pricier Petrol Than Malaysia (Even Oil-Rich Ones!)

7 Countries With Pricier Petrol Than Malaysia (Even Oil-Rich Ones!)

Why is Malaysia's RON95 petrol price locked at RM1.99 while global rates soar? See the global price comparison and how the BUDI MADANI subsidy protects your wallet.

14-07-2026
Auto News
Market Report: Malaysia's Auto Sector Is Defying All Expectations

Market Report: Malaysia's Auto Sector Is Defying All Expectations

Malaysia’s auto sector is defying expectations in 2026! Discover why vehicle registrations are nearing record highs based on JPJ data, how EV sales surged 85%, and what the new policy changes mean for you.

14-07-2026
Auto News
Zeekr Is Taking Over: Malaysia’s No. 1 Premium EV Brand Is Opening 7 More Outlets Soon

Zeekr Is Taking Over: Malaysia’s No. 1 Premium EV Brand Is Opening 7 More Outlets Soon

Zeekr Malaysia is expanding! With 11 outlets now open and 18 planned by end-2026, the No. 1 premium EV brand is making it easier than ever to own a Zeekr.

14-07-2026
Auto News
Sri Petaling’s New BYD Outlet Is A Game Changer—And It’s Getting A 'Stadium' Makeover Soon

Sri Petaling’s New BYD Outlet Is A Game Changer—And It’s Getting A 'Stadium' Makeover Soon

Explore the new BYD Sri Petaling showroom—a game-changing EV hub in KL. Get the scoop on the upcoming 'stadium' delivery experience and win a RM39,900 motorcycle!

13-07-2026
Auto News
RXZ Tragedy At Jabor: A Fatal Wake-Up Call For Malaysia's Convoy Culture

RXZ Tragedy At Jabor: A Fatal Wake-Up Call For Malaysia's Convoy Culture

The fatal RXZ convoy crash near Jabor has left many in shock. We look at the details behind the accident and the growing concerns over convoy road safety.

12-07-2026
Auto News
No Helmet, No Exceptions: JPJ Confirms Summonses For Viral Campaign Convoy Riders

No Helmet, No Exceptions: JPJ Confirms Summonses For Viral Campaign Convoy Riders

JPJ confirms summonses for helmetless riders in viral campaign convoys. Minister Anthony Loke emphasizes that safety laws apply to everyone, regardless

10-07-2026
Auto News
No License, No Insurance, And Ketum: The Reality Behind JPJ’s Roadblock Crackdown

No License, No Insurance, And Ketum: The Reality Behind JPJ’s Roadblock Crackdown

Over 91,000 vehicles inspected. More than 42,000 notices issued. These aren't just figures on a report, they represent a massive, ongoing shift in how authorities are policing our roads.

10-07-2026
Auto News
Hybrid, Petrol, Or EV? Toyota’s Latest Sales Figures Prove Malaysians Love Having Options

Hybrid, Petrol, Or EV? Toyota’s Latest Sales Figures Prove Malaysians Love Having Options

UMW Toyota reports 36,200 units sold in 1H 2026. Discover how Toyota's "Multi-Pathway" strategy—from petrol and hybrids to EVs—is winning over Malaysian drivers.

10-07-2026

Show More

trending_flat
Carz Automedia Malaysia Logo
About Us

CarzAutoMedia: Stay connected to the latest car news! Get instant updates on new releases, industry trends, and automotive innovations. Your go-to source for 24/7 coverage of everything automotive.

© 2026 CariCarz.com. All Rights Reserved.