THE price of diesel in Sabah, Sarawak and the Federal Territory of Labuan has been maintained at RM2.15 per litre because diesel is not just fuel for them but also the lifeblood of daily activities.
According to the Ministry of Finance (MOF), the geographical area, which is 60 per cent larger than Peninsular Malaysia, as well as the challenging terrain, makes the residents of Sabah, Sarawak and Labuan more dependent on the commodity.
MOF explained that diesel is widely used in Sabah, Sarawak and Labuan for electricity generation and economic activities such as transportation and fishing.
"The vast interior areas with challenging terrain limit road access; the residents rely on water transport and heavy vehicles such as four-wheel drives.
"Electricity coverage and infrastructure are not comprehensive in some rural areas, so diesel is the main source of energy for daily life," MOF said in a post on its Facebook account on Wednesday.
MOF said diesel consumption is around two billion litres, with the price maintained at RM2.15 per litre to support the needs of the people in Sabah, Sarawak and Labuan.
The targeted implementation of diesel subsidies places emphasis on consumer needs and the principle of equity to ensure effective distribution to Malaysians, the ministry added. – April 15, 2026
