Sabah and Sarawak jointly obtained roughly RM1.4 billion in diesel subsidies from January to April this year, Agriculture and Food Security Minister Datuk Seri Dr. Armizan Mohd. Ali informed Parliament today. He noted that this amount represents the expense of upholding the fuel rebate of RM2.05 per litre for B10 diesel in both states.

He remarked that most of the subsidy spending was directed towards transportation, fisheries and agriculture, sectors that depend greatly on diesel for both off-road and on-road equipment. He added that remote East Malaysian communities, deprived of alternative energy options, also accounted for a major share of usage.

Compared with the same period last year, the subsidy outlay rose by about 12 percent in the first four months, fueled by elevated world oil prices and sustained demand. “We recognise the growing fiscal strain,” Armizan continued, “so the ministry is exploring measures to channel support more precisely, ensuring vital rural services remain unaffected.”

Proposals under review include digital voucher programmes for small-scale farmers and fishers and a tiered subsidy mechanism anchored on confirmed consumption. The administration intends to roll out these reforms in the latter half of the year after concluding pilot tests in chosen districts.

Opposition MPs have faulted the timing of potential reductions, warning that road-bound and island communities in East Malaysia would suffer most if assistance is withdrawn too swiftly. They have called on the ministry to enhance oversight and guarantee that any revised system safeguards vulnerable populations’ access to cost-effective fuel.

Dr. Armizan said he welcomes input from all parties and plans to present a comprehensive subsidy rationalisation proposal at the mid-year budget review. Meanwhile, he emphasised that the diesel subsidy will stay at the present rate through June 30.

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