It’s about equity, not equality, ex-Sabah CM says on diesel price gap

Salleh Said Keruak says the diesel subsidies are needed to manage structural differences between East and West Malaysia.

It’s about equity, not equality, ex-Sabah CM says on diesel price gap

PETALING JAYA: A former Sabah chief minister has defended the federal government’s decision to maintain diesel subsidies in East Malaysia amid the surge in oil prices, a move described by the opposition as unfair to West Malaysians.

Salleh Said Keruak said Malaysia was jointly formed as a partnership by Malaya, Sabah and Sarawak in 1963, and that the two East Malaysian states were not “ordinary states”.

The Sabah Umno treasurer added that the special position of both states was enshrined in the Malaysia Agreement 1963 as well as the Federal Constitution.

“Federal government policies should reflect this foundation,” he said in a Facebook post.

The former Usukan assemblyman added that both Sabah and Sarawak had structurally higher costs with logistics dependent on long-distance transport, whether by road or sea.

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He said this meant that supply chains were more complex and expensive, particularly in rural areas.

“Geography adds to the challenge. Large areas, scattered populations, and limited infrastructure increase distribution costs. Any rise in fuel costs is quickly felt by consumers.

“At the same time, Sabah and Sarawak contribute significantly to the country’s natural resources. This must be recognised in national policy.

“Subsidies are therefore not a privilege, but a necessary balancing tool to manage these structural differences. Fairness is not about treating everyone the same, but recognising different realities, history, and roles within the federation,” said Salleh.

Diesel currently retails for RM5.52 per litre in Peninsular Malaysia, but is sold for half the price in East Malaysia at RM2.15 per litre.

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Yesterday, Perikatan Nasional said the difference risked creating the perception of injustice towards consumers and businesses in Peninsular Malaysia.

From April 1, Putrajaya will limit diesel purchases in East Malaysia according to different categories of vehicles due to concerns over stockpiling and smuggling.