Following the revision of the BUDI Madani RON95 (BUDI95) monthly quota from the current 300 to 200 litres, the government announced that temporary diesel sale restrictions in Sabah, Sarawak, and Labuan will also take effect from 1 April 2026, as reported by The Edge.
These measures aim to limit hoarding and smuggling of the fuel in light of the current energy crisis, which retails at a subsidised RM2.15 per litre in those regions compared to RM5.52 per litre in Peninsula Malaysia
Consequently, light vehicles such as taxis, cars, vans, and pickup trucks are restricted to 50 litres of diesel per purchase. For the commercial sector, including public transport vehicles not exceeding three tonnes, the limit is 100 litres. For heavy vehicles exceeding three tonnes, the purchase limit is capped at 150 litres.
The Minister in the Prime Minister’s Department for Sabah and Sarawak Affairs, Datuk Mustapha Sakmud, stated that the federal government is maintaining the diesel subsidy for these states despite escalating global cost pressures. He explained that the decision reflects the administration’s commitment to addressing the high cost of living and logistical expenses caused by the unique geographical and infrastructural challenges of the region.
With the war in Iran pushing crude oil prices past US$100 (approx. RM401) per barrel, Malaysia’s monthly subsidy bill for petrol and diesel has reportedly ballooned to RM4 billion. Prime Minister Datuk Seri Anwar Ibrahim stated that while the government is determined to protect the subsidised price for the rakyat, the state cannot adopt a wait-and-see approach while the subsidy bill spirals.
He further warned of a decisive crackdown on smuggling activities, which have resulted in monthly leakages amounting to hundreds of millions of ringgit. He stated that all relevant agencies will be deployed to ensure that those attempting to illicitly profit from the fuel subsidies face the full weight of the law.
