KUALA LUMPUR, April 15 — The price of diesel in Sabah, Sarawak, and the Labuan Federal Territory is maintained at RM2.15 per litre because diesel is not just fuel, but a lifeline for daily activities.
The Finance Ministry (MOF) said that the region, which is about 60 per cent larger than Peninsular Malaysia and is coupled with challenging terrain, makes residents of Sabah, Sarawak, and Labuan more dependent on diesel.
The fuel is widely used in the region for electricity generation (via generators) and for economic activities such as transportation and fishing.
“The vast interior regions with challenging terrain limit road access; therefore, 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 becomes the main energy source for daily life," it said in a Facebook post today.
The MOF added that diesel consumption in the region is around two billion litres, and that the implementation of targeted diesel subsidies emphasises consumers’ needs and the principle of equality to ensure effective distribution to the people.
