Budi Diesel subsidy in Sabah should be reviewed to better reflect people’s needs

BELURAN: The targeted Budi Diesel subsidy scheme in Sabah and Sarawak should be reviewed and refined to better reflect the needs of people in both states, given their vast geographical areas and the long travel distances residents must cover, said Sabah State Legislative Assembly (DUN) Backbenchers Chairman, Datuk Masiung Banah.
Masiung said the current subsidy quota of 200 litres per diesel vehicle is impractical for residents in rural and interior areas, where fuel consumption is significantly higher than in Peninsular Malaysia. He proposed increasing the quota to between 300 and 500 litres per eligible vehicle.
The Kuamut State Assemblyman stressed that Sabah and Sarawak should not be treated the same as states in Peninsular Malaysia, citing their expansive landscapes and extensive road networks. He added that the Federal Government should also recognise the two states’ contribution as major oil-producing regions.
Masiung further urged the government to relax the eligibility criteria for the Budi Diesel programme, noting that many rural residents, particularly farmers, are unable to qualify because the vehicles they use are registered under company names or acquired through informal hire-purchase (“sambung bayar”) arrangements.
He said residents in areas such as Kuamut often spend five to six hours travelling to Kota Kinabalu, resulting in substantially higher diesel consumption. In addition, operators of boats and generators in communities that still lack road access and reliable electricity are also affected, as they are forced to purchase diesel at market prices.
Masiung made the remarks after attending the GRS Kuamut Constituency Thanksgiving Gathering for Outstation Supporters at the Kampung Tonoting Hall in Ulu Sapi, Nangoh, on Saturday.
He emphasised that while the government’s efforts to curb subsidy leakages deserve support, the implementation of the targeted diesel subsidy programme must also take into account the realities faced by people living in Sabah and Sarawak. – James Leong

Masiung said the current subsidy quota of 200 litres per diesel vehicle is impractical for residents in rural and interior areas.