Higher BUDI quotas bring relief to Sabah, Sarawak

The Malaysian government has announced an increase in the basic subsidised RON95 and BUDI Diesel fuel quotas for East Malaysian states of Sabah and Sarawak, effective September 1. This move aims to provide relief to residents who heavily rely on private vehicles for commuting and transporting goods over long distances.

Sabah and Sarawak Affairs Minister Mustapha Sakmud said the decision reflects the government's responsiveness to public feedback, particularly from rural and interior areas of these two states. These regions face challenges such as long travel distances, scattered settlements, limited public transport, and high dependence on vehicles for daily activities.

Previously, the government had temporarily reduced the RON95 quota from 300 to 200 litres a month in April 2022 due to concerns over fuel supply stability caused by the West Asia conflict. However, the quota has now been restored to its original 300 litres per month, while diesel-powered pickups and jeeps are now eligible for an increase to 400 litres per month.

Economist Lai Wei Sieng from Universiti Kebangsaan Malaysia noted that this adjustment will significantly benefit motorists in Sabah and Sarawak due to the unique challenges posed by the region's geography and infrastructure. The lack of a comprehensive public transport network, dense terrain, and long distances between districts have resulted in higher fuel consumption in these areas.

Lai emphasized that private vehicles are a necessity for many residents in Sabah and Sarawak, as they are crucial for transporting agricultural produce, accessing basic necessities, and conducting economic activities. The additional 100 litres of fuel per month will provide greater relief to rural and interior communities, who typically have to travel longer distances to carry out these activities.

The government's decision demonstrates a more responsive approach to addressing cost-of-living challenges in East Malaysia, taking into account the specific needs and consumption patterns of these regions. Lai stressed that this policy adjustment, based on current realities and public feedback, is vital in light of global energy supply and market conditions, which may change in the future.