THE United Sabah Progressive Party (UPKO) has welcomed the federal government’s decision to maintain diesel subsidies for Sabah and Sarawak, describing the move as both justified and essential for the welfare of the states’ residents.
UPKO president Datuk Ewon Benedick said Sabah and Sarawak, as major contributors to Malaysia’s oil and gas production, are entitled to fuel subsidies, particularly in light of surging global prices.
“If there are colleagues in Peninsular Malaysia questioning why Sabah receives diesel subsidies, they should first consider who produces the gas and oil,” he said, responding to queries at UPKO’s Aidilfitri celebration in Putatan.
“Sabah is an oil-producing state, and it must be explained to Sabah what has been returned to the people of Sabah. This is my view, my answer to those in Peninsular Malaysia who are asking why Sabah is granted this, while Peninsular Malaysia is treated differently,” he added.
The remarks came following the government’s announcement to keep diesel prices lower in Sabah and Sarawak compared with Peninsular Malaysia, as highlighted by Prime Minister Datuk Seri Anwar Ibrahim.
Ewon, who also serves as Deputy Chief Minister of Sabah, pointed out that since the enactment of the PETRONAS Act, Sabah had lost significant control over its natural resources.
“I support the decision to provide diesel subsidies and other essential support to the people of Sabah because we are entitled to it.
“We have already subsidised development in other states, so it is only right to return to Sabah what it is due, which has been lost since certain laws, particularly the PETRONAS Act, were implemented,” he said.
He stressed that as a state contributing substantial oil and gas revenue to the country, Sabah is entitled to reap benefits from its natural wealth, not only in development but also for domestic needs.
“I was involved in that decision. I was still in the federal Cabinet at the time, and we defended it because Sabah is a state that produces gas and oil.
“I have consistently said that the gas and oil revenue from Sabah, and from other producing states, subsidises development in non-producing states. Sabah deserves its fair share, both for development returns and for domestic use,” he said.
Ewon further suggested that Malaysia should prioritise the use of its oil and gas output for domestic consumption to mitigate the impact of global fuel price volatility, especially during crises in West Asia.
The comments underscore ongoing debates over equitable resource distribution and regional fuel subsidies, particularly in states that are major contributors to the nation’s energy production. - March 27, 2026
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