Putrajaya ready to review diesel quota for rural Sabah

PETALING JAYA: The government is prepared to review diesel subsidy quotas in rural Sabah, particularly for residents who rely on diesel-powered vehicles as their main mode of transport.

Finance minister II Amir Hamzah Azizan said the government is open to improving the implementation of targeted diesel subsidies, but any new mechanism must be carried out in close cooperation with the state government.

He said the government understands the challenges faced by rural communities who use diesel vehicles for daily needs, including transporting passengers and delivering goods.

“The most important thing is that we need cooperation from the state government,” he was quoted by Berita Harian as saying after an event in Papar, Sabah, today.

Amir said that for diesel vehicles used for business purposes such as passenger transport or goods delivery, operators may apply for higher quotas under the subsidised diesel control system (SKDS) administered by the domestic trade and cost of living ministry.

He said the use of fleet cards allows diesel quotas to be assessed based on the operational needs of each business.

For private use, he said, the basic quota is set at 200 litres a month, with an additional 100 litres available upon application under the BUDI Diesel programme.

Last month, Sabah DAP chairman Phoong Jin Zhe called on the government to review the monthly BUDI Diesel quota for the state, saying 200 litres is insufficient for many households.

Echoing calls by Stampin MP Chong Chieng Jen for Sarawak, Phoong said Sabah’s geography, settlement patterns, and travel needs differ significantly from Peninsular Malaysia and must be reflected in policy design.

“In Sabah, particularly in the interior and rural areas, many families consume far more than that,” he said in a statement.

The government introduced the BUDI Diesel programme on July 1, under which eligible diesel vehicle owners throughout the country are entitled to 200 litres of subsidised diesel at RM2.10 a litre.

Pick-up truck and SUV owners may apply for an additional 100 litres.