KOTA KINABALU: June 25, 2026 – The proposed 200-litre monthly diesel subsidy quota under the BUDI MADANI programme is impractical for rural Sabahans who depend on diesel vehicles for daily errands and economic activities, according to Mr Rafie Robert, Chairman of the Keningau Tourism and Culture Association.
Rafie said the programme’s implementation must take into account Sabah’s geography, which differs markedly from Peninsular Malaysia, including vast travel distances and infrastructure challenges in the interior.
“For residents in Keningau, Nabawan, Sook, Tenom and other inland districts, travelling hundreds of kilometres each week for work, healthcare, education and business is routine. Under these circumstances, the 200-litre monthly quota is simply insufficient,” he said in a statement today.
He explained that the majority of residents use four-wheel-drive vehicles and pick-up trucks, which are suited to rural roads and hilly terrain, resulting in significantly higher diesel consumption than in urban areas.
Rafie also highlighted the impact on the rural tourism sector, as well as farmers and entrepreneurs who rely on diesel to transport agricultural produce to market centres.
“Any increase in diesel costs has a direct knock-on effect on operating expenses, goods prices and the cost of living – particularly in the interior, which already faces higher transport costs,” he said.
While expressing support for efforts to curb subsidy leakages, he stressed that implementation must account for Sabah’s unique circumstances.
“Sabah is an oil and gas producing state that contributes to the national economy. It is only fair that the government gives special consideration to ensure that the people are not adversely affected by policies which fail to reflect local realities.”
Rafie urged the federal government to review the 200-litre cap and consider granting a special additional quota for Sabah – specifically for rural residents, long-distance users, tourism operators, farmers and the agricultural sector.
“We back the government’s goal of reducing subsidy leakages, but the policies introduced must be fair, practical and aligned with the actual needs of the people of Sabah,” he added.
