Diesel subsidies in Sabah and Sarawak have increased by five- to six-fold following the global energy crisis caused by the Middle East conflict, said domestic trade and cost of living minister Datuk Armizan Mohd Ali, reported The Star.
“In January and February 2026, diesel subsidies borne by the government for Sabah and Sarawak amounted to RM103 million and RM106 million respectively. But after the conflict began, subsidies have risen to RM563 million in March and RM647 million in April,” Armizan said.
Diesel subsidies for Sabah and Sarawak for the first four months of this year reached RM1.4 billion, compared to around RM2 billion for all of 2025, the minister said. However, the government will continue to bear the rising cost of diesel subsidies as long as global oil prices remain high, and the energy crisis persists, he said.
Operators of goods and public land transport vehicles in Sabah, Sarawak and Labuan who qualify for diesel subsidies are urged to immediately register under the subsidised diesel control system (SKDS) to ensure they continue to have access to the government’s assistance, Armizan continued.
The use of SKDS with fleet cards will be mandatory for obtaining diesel subsidies for the land transport sector from a date to be announced later, the minister said, and called on companies with vehicles in the 33 eligible categories not to delay their applications to avoid disruption in receiving subsidised diesel.
“Through SKDS, eligible companies will receive diesel subsidies via the fleet card mechanism at RM2.15 per litre for the goods transport sector and RM1.88 per litre for the public transport sector,” Armizan said.
A total of 8,060 companies involving 29,631 vehicles across Sabah, Sarawak and Labuan have registered under SKDS as of June 14, according to The Star.
The minister said that the expansion of SKDS is part of the government’s effort to strengthen digital monitoring and enforcement of diesel subsidies to ensure aid reaches the intended groups and to reduce leakages, the report wrote.
Meanwhile, Bernama reported that the ministry of finance stated that Malaysian fuel subsidies are projected to drop to RM3.5 billion a month, for RM2 billion on RON 95 petrol and RM1.5 billion for diesel respectively, as global Brent crude eases to under US$90 (RM364) a barrel from a previous high of US$120 (RM486).
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Subsidy must remain the same to all malaysia including sabah sarawak. Implement the same system fast. That fair to all