By Karen Bong
KUCHING, April 4: Minister of Tourism, Creative Industry and Performing Arts Dato Sri Abdul Karim Rahman Hamzah defended the continued subsidised diesel rate of RM2.15 per litre in Sarawak and Sabah, highlighting that while diesel prices in Peninsular Malaysia have surged to RM6.02 per litre, affected sectors there also benefit from targeted subsidies.
Abdul Karim, who is also Asajaya assemblyman, noted that Malaysia’s diesel prices remain among the lowest in the region, particularly compared with Singapore where prices have exceeded S$4 per litre (about RM12.50).
“My hope is that the subsidy for diesel in Sarawak and Sabah can be maintained at RM2.15 per litre.
“While many in Peninsular Malaysia have expressed dissatisfaction and unfairness over the price increase, it’s important to note that industries using diesel there also receive other forms of support,” he said in a pre-recorded interview when met by the press at Kota Samarahan MP Datuk Rubiah Wang’s Aidilfitri open house today.
He cited school buses as an example, noting that these vehicles benefit not only from diesel subsidies but also from other incentives targeted for their sector.
“So while people in the west may feel the impact of higher diesel prices, the affected sectors are not entirely left to shoulder the cost,” he explained.
The minister added that in Sarawak, diesel-powered 4WDs are widely used, but the State has so far seen minimal impact from global fuel price fluctuations.
He cautioned that a significant diesel hike could affect longhouse residents, underlining the importance of maintaining subsidies.
Recently, the Finance Ministry reported that the ongoing Middle East conflict has driven global crude oil prices above US$100 per barrel, with refined petrol and diesel reaching US$150 and US$250 per barrel respectively.
The government has absorbed part of these costs to ensure the public does not fully bear the impact.
As part of ongoing support, the additional Budi Diesel cash assistance of RM100 will continue in April, bringing total aid to RM300 for Budi Individu and BUDI Agri-Comodity recipients.
Meanwhile, Domestic Trade and Cost of Living Minister Datuk Armizan Mohd Ali has also dismissed claims that the federal government is being “unfair” by maintaining bulk diesel subsidies in Sabah, Sarawak, and Labuan.
He explained that the rollout of targeted diesel subsidies is being done in stages to account for local factors, such as high diesel dependency, geography, and higher logistics costs for transporting goods from the peninsula.
He emphasised that the transport costs to Sabah and Sarawak are higher than to most major trading hubs in the region, which contributes to the price difference of goods in the market.
The Finance Ministry is studying the framework for targeted diesel subsidies in the three regions before further discussions with the respective state governments. — DayakDaily
