KOTA KINABALU: July 16, 2026 – A Sabah-based non-governmental organisation has thrown its support behind the state government’s push to review the targeted diesel subsidy programme, calling for adjustments that would benefit both rural communities and urban residents who rely on diesel-powered vehicles.
Bantuan Orang Susah Sabah (BOSS) president Datuk Kenny Chua said the review proposed by Chief Minister Hajiji Noor was welcome, but cautioned that any revisions should extend beyond rural areas.
“While rural communities are among those most affected, we should also consider diesel vehicle owners in urban areas. In Sabah, many people use four-wheel-drive vehicles not only for rural travel but also as their daily transport in towns and cities,” Mr Chua said in a statement.
He noted that many diesel-powered 4WD owners faced high fuel consumption due to the nature of their vehicles, with urban driving conditions – including frequent traffic congestion – further increasing diesel usage.
Vehicle owners in Sabah also faced higher maintenance expenses due to poor road infrastructure, which contributed to greater wear and tear, he added.
“The cost of owning and maintaining a vehicle in Sabah is already high. Poor road conditions can accelerate damage to vehicles and increase repair costs for ordinary users,” Mr Chua said.
Mr Hajiji said on Wednesday that the Sabah government was engaging the Finance Ministry and relevant federal agencies over the implementation of the targeted diesel subsidy programme, which took effect in the state on 1 July.
The chief minister said a follow-up meeting involving state and federal agencies would be held this week to discuss concerns raised by stakeholders and consider recommendations to address issues affecting those impacted by the policy.
Under the BUDI Diesel programme introduced by Putrajaya, eligible diesel vehicle owners nationwide receive 200 litres of subsidised diesel monthly at RM2.10 per litre.
Mr Chua said the government’s review should ensure the subsidy mechanism reflected Sabah’s unique geographical and economic conditions, where many residents depended on diesel vehicles for mobility.
“The review should aim for a fairer system that recognises the actual usage patterns and challenges faced by Sabahans,” he said.
