KOTA KINABALU: As unbelievable as it sounds, diesel costs more in oil-producing Sabah than in near-barren Peninsular Malaysia.
Decrying the withdrawal of fuel subsidies as “particularly unfair” to Sabah and Sarawak, the Federation of Sabah Lorry Transport Associations (FSLTA) said the industry was now forced to increase its charges by as much as 30% to cope with higher costs.
Said association president Steven Chua Pui Ming: “It’s all very confusing. Why is the subsidised diesel price RM1.48 in Sabah but RM1.43 a litre in Peninsular Malaysia?
“As we all know, Malaysia is a crude oil exporter so when world market fuel prices increase, Sabah will definitely benefit in earnings from the sales.
“Hence, Sabah and Sarawak should enjoy higher subsidy but, sad to say, they have to pay more.
“The government must explain why fuel prices in Malaysia are much higher than in the other oil-exporting countries,” he said, drawing comparison to neighbouring Brunei.
Chua said that in oil-producing Brunei, diesel is priced at 30 cents (Brunei currency) a litre, which is equivalent to 86 sens in Malaysia.
He also pointed out that the quality of Malaysian diesel is not on par with the “Euro 2” standard to warrant the higher price.
“Brunei is now enjoying Euro 2 to 3 standard and will soon be upgraded to Euro 3 to 4 standard.
“The price increase will be a matter of 20 to 30 cents only,” said Chua, who is also the vice- president of Pan Malaysia Lorry Owners’ Association.
Unfair to Sabah
He said that the removal of the fuel subsidy was especially unfair to Sabah and Sarawak, given that the infrastructure development in both states is 10 years behind that of the peninsula.
“Why didn’t the National Economic Council (NEC) take this into consideration before abolishing the diesel subsidy?” he asked.
Chua said the justifications advanced by the Domestic Trade, Cooperatives and Consumerism Ministry to back its decision to abolish the subsidies is misleading.
He said his association is angry that the government has ignored the plight of transport operators.
“The ministry did not mention that the diesel price will be increased from RM1.80 to RM2.80 per litre.
“Now, whether it is long or short distance, both the Federation of Sarawak Lorry Association and Federation of Sabah Lorry Transport Association have come to a conclusion to increase our prices by 20% to 30% effective June 1.
“It is very unfortunate for the end-users as they will have to bear part of the increased transport cost,” Chua said.
FSLTA says there will be inevitable price increases across the board for all goods and services and the NEC must bear the blame.
Written by Queville To
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