The government’s diesel subsidy rationalisation programme, which has seen the price of diesel go up to RM3.35 per litre, is currently limited to Peninsular Malaysia, with no timeline set for its implementation across the South China Sea. And if the ministry of finance is anything to go by, the country has no plans to raise prices of the fuel in East Malaysia, according to Bernama.
Asked by Kuala Langat MP Ahmad Yunus Hairi why the rationalisation is only being applied in the peninsula and not Sabah and Sarawak, the ministry said in a written reply that this is because the fuel is needed for economic activities and development projects in the two states.
“Currently, the government does not intend to implement the targeted diesel subsidy in Sabah and Sarawak, because the majority of modes of transport to carry out economic activities as well as development programmes and projects in the two regions use diesel fuel,” it stated.
The challenge of implementing a fleet card system for commercial users, as utilised in the Subsidised Diesel Control System (SKDS 2.0) in the peninsula, was also cited. “The geographical situation there limits the feasibility of the fleet card mechanism, which requires more sophisticated facilities and infrastructure, especially in the interior,” the ministry added.
It also said, however, that the subsidy rationalisation in Peninsular Malaysia is only the first phase of the programme, and the staggering of the implementation will allow oil companies to develop and complete the necessary facilities and infrastructure. This ensures the states (as well as Labuan) will be ready if the programme is expanded to East Malaysia in the future.
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