THE government will continue to maintain diesel subsidies in Sabah and Sarawak in an effort to prevent sharp increases in transport costs, logistics expenses and the price of essential goods in the two regions.
The decision, announced by Minister in the Prime Minister’s Department for Sabah and Sarawak Affairs Datuk Mustapha Sakmud, reflects the government’s intention to protect the welfare of residents, particularly in areas that depend heavily on land and maritime transport for the supply of goods.
Mustapha said the measure was especially important given current global uncertainty, as geopolitical tensions involving Iran in West Asia have pushed energy prices higher and begun affecting economic supply chains worldwide.
“The reality is that the government is currently bearing about RM3.2 billion each month for petrol and diesel subsidies, approximately RM2 billion for RON95 and RM1.2 billion for diesel. This proves the government’s strong commitment to protecting the people from global economic shocks,” he said in a statement.
In addition to diesel subsidies, the government is also continuing to maintain the retail price of RON95 petrol at RM1.99 per litre through the targeted BUDI MADANI subsidy mechanism. Without subsidies, Mustapha said the market price of the fuel would be around RM2.67 per litre.
He added that fuel prices in Malaysia remain among the lowest in Southeast Asia when compared with neighbouring countries. Petrol prices in Thailand are estimated to be around RM4 per litre, while Indonesia records prices between RM3 and RM3.50 per litre, and Singapore between RM8 and RM10 per litre.
Mustapha urged the public to understand the realities of the current economic environment and to use fuel subsidies responsibly.
“In an uncertain world, we must remain calm, not be influenced by speculation, and continue to stay united as Malaysians,” he said, adding that the government would continue to take necessary steps to safeguard the country’s economic stability. - March 15, 2026
