Review subsidised diesel quota for Sabahans, says DAP state chairman

PETALING JAYA: Sabah DAP chairman Phoong Jin Zhe has called on the government to review the monthly BUDI Diesel quota for the state, saying 200 litres are insufficient for many households.

Echoing calls by Stampin MP Chong Chieng Jen for Sarawak, Phoong said Sabah’s geography, settlement patterns and travel needs differ significantly from Peninsular Malaysia and must be reflected in policy design.

“In Kuala Lumpur, Selangor or Penang, 200 litres of diesel per month may be sufficient for an average household.

“In Sabah, particularly in the interior and rural areas, many families consume far more than that,” he said in a statement.

Phoong also raised concern that the subsidy system could exclude people who rely on diesel but do not own diesel vehicles, including those who use generators, farmers, and people who depend on hired transport.

“These people may not own diesel vehicles, but their livelihoods are no less dependent on diesel,” he said, warning that a vehicle-registration-based subsidy framework would leave them without recourse.

From July 1, the government will introduce the Budi Diesel programme, under which eligible diesel vehicle owners throughout the country will be entitled to 200 litres of subsidised diesel at RM2.10 per litre. Pick-up truck and SUV owners may apply for an additional 100 litres.

Phoong also warned that SMEs, transport operators and agricultural businesses, already contending with high logistics costs in reaching inland areas, could face a chain reaction of cost increases if their vehicles do not qualify for subsidised diesel.

“Business owners cannot absorb all these costs indefinitely. Eventually, these costs will be passed on to consumers, creating a new wave of inflationary pressure in Sabah,” he said.

He also called for a transition period of at least three to six months, saying public engagement and awareness efforts have been insufficient ahead of the rollout.

He said consultations with the Sabah government, industry players and grassroots stakeholders were necessary to avoid implementation problems.

“This policy will have a significant impact on both Sabahans and the business community. Society needs time to adapt, and the implementation process requires better preparation,” he said.