PETALING JAYA: The Sabah government is engaging the Finance Ministry and relevant federal agencies over the implementation of the targeted diesel subsidy programme, which took effect in the state this month, said Chief Minister Datuk Seri Hajiji Noor.
He said that following concerns raised by various stakeholders, a follow-up meeting with the Finance Ministry and State and Federal agencies would be held this Friday, to be chaired by the Sabah State Secretary.
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“The expansion of the targeted diesel subsidy programme to Sabah, which began on July 1, was also discussed at a state Cabinet meeting on July 13.
In this regard, the Finance Ministry and relevant government agencies have been instructed to examine the issues further and consider appropriate recommendations to address the concerns of those affected,” he said.
Putrajaya 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.
Earlier, Finance Minister II Amir Hamzah Azizan said Putrajaya was prepared to review diesel subsidy quotas in rural Sabah, particularly for residents who rely on diesel-powered vehicles as their main mode of transport.
He said while the government was open to improving the implementation of targeted diesel subsidies, any new mechanism must be applied in close cooperation with the State Government.
Amir’s remarks followed calls by Sabah DAP chairman Phoong Jin Zhe for the government to review the state’s monthly BUDI Diesel quota. Phoong had said that 200 litres was insufficient for many households.
State Agriculture, Fisheries and Food Industry Minister Datuk Jamawi Jaafar said he presented a comprehensive report on how our farmers have been affected, how farm machinery has been impacted, how pickup truck owners have been affected, as well as young people who rely on pickup trucks and jeeps for work and business.
“The Chief Minister took the matter seriously and instructed the State Cabinet to invite the Ministry of Finance and KPDN to conduct briefing and engagement sessions with civil servants and government elected representatives,” he said.
Jamawi said the first session will be held on Friday at Menara Kinabalu with heads of state departments, while a second session involving government assemblymen will take place on Sunday.
He said the meetings are intended to give the federal government a clearer understanding of the realities on the ground since the BUDI Diesel scheme came into effect.
According to Jamawi, Sabah’s geography and long travel distances result in fuel consumption patterns that differ significantly from those in Peninsular Malaysia, requiring a more tailored approach to subsidy implementation.
“We are not the same as Peninsular Malaysia. Over there, a three-hour drive can take you across several states. In Sabah, you can drive for three hours and still not even reach the next district. That is why diesel and petrol usage in Sabah is different.
“We understand that subsidy leakages must be addressed, but the burden should not be shifted onto farmers, fishermen, food industry operators and young entrepreneurs simply because the authorities failed to curb leakages. That would not be fair to them,” he said in Ranau.
