Diesel subsidy should continue for Sabah, Sarawak as people there use 4WDs out of necessity – Warisan VP
Diesel is set to go down the targeted subsidy route soon, as mentioned by finance minister and PM Datuk Seri Anwar Ibrahim in the tabling of Budget 2024 last week.
Aside from subsidy bill savings for the government, curbing leakage and smuggling was cited as a main reason – the price differential between our subsidised RM2.15 per litre and the price of diesel in countries that share a land border with Malaysia – Thailand and Indonesia – is substantial.
Anwar said that the market price for diesel is RM3.75 per litre. As such, the government is bearing RM1.60 for each litre of diesel sold at RM2.15 per litre, or around RM1.5 billion ringgit in total.
Subsidy rationalisation for diesel will happen in stages, and selected segments such as goods transport and logistics companies will continue to enjoy subsidised diesel, but other users will be charged a higher price. Private ownership of pick-up trucks, popular among urban folk these days, might suffer from this.
Parti Warisan says that those in Sabah and Sarawak will be affected too, and diesel subsidy should continue for the East Malaysian states. Warisan VP Datuk Junz Wong said the federal government’s announcement is causing growing concern among those in Borneo, which sees high use of diesel-powered 4WDs.
“The rugged terrains and challenging road conditions have compelled people in these areas to opt for four-wheel-drive vehicles, which run on diesel,” he said in a statement yesterday, reported by The Star.
“This choice is often made out of necessity due to the unsuitability of smaller, cheaper sedans for these road conditions. The diesel subsidy has played a crucial role in alleviating these residents’ financial burden. It’s not just four-wheel-drive vehicle owners who will be affected. The cutback in subsidies also threatens the economic stability of villagers and farmers who rely on trucks and vans for agricultural activities,” he said.
“This, in turn, strains these regions’ already fragile agricultural sector. Even fishermen, who depend on diesel to power their boats for their daily catch, are not exempted from the impending hardships,” the the Tanjung Aru MP added, urging the federal government to consider the unique needs of Sabah and Sarawak.
Instead, a more targeted, comprehensive and region-specific approach should be adopted, the politician said. “Strengthening enforcement and ensuring that law enforcement officers maintain integrity in their duties could be more effective measures to address the problem (leakage) without penalising genuine diesel users in Sabah and Sarawak,” he said.
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