Sabah and Sarawak continue to receive subsidised diesel with limited purchases - Anwar

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Sabah and Sarawak will continue to enjoy subsidised diesel at RM2.15 per litre, despite global diesel prices. - Photo by Bernama

Stricter monitoring and enforcement will be necessary to curb abuse of the subsidy system.

SHAH ALAM - Sabah and Sarawak will continue to enjoy subsidised diesel at RM2.15 per litre, despite global diesel prices.

In a special address, Prime Minister Datuk Seri Anwar Ibrahim said he acknowledged that the widening price gap increases risks such as leakages and smuggling, but noted that the decision takes into account the unique geographical and logistical challenges in both states.

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He stressed that stricter monitoring and enforcement will be necessary to curb abuse of the subsidy system.

To ensure fair distribution and sufficient supply, he said the government will introduce limits on diesel purchases:

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- Light vehicles, including public transport, goods transport and private vehicles: Maximum 50 litres per transaction.

- Public and goods transport vehicles below three tonnes: Maximum 100 litres per transaction.

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- Vehicles above three tonnes: Maximum 150 litres per transaction.

He also warned that without such controls, there is a risk of hoarding and cross-border smuggling, issues that authorities have previously detected.

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"I urge the public to understand that these measures, while potentially inconvenient for some, are necessary to protect border national interests and ensure equitable access to fuel," he said.

He also signalled a major escalation in enforcement efforts, calling on all government agencies to act decisively.

"This is a strong warning that fuel smuggling, which has reportedly caused losses amounting to hundreds of millions of ringgit monthly, will be met with the full force of government enforcement," he added.