A note on the March 26 fuel price announcement – for now, Borneo spared
By Remy Majangkim
Majangkim Office
KOTA KINABALU: The government announced new fuel prices yesterday.
Peninsular diesel rose to RM5.52 per litre. Sabah, Sarawak, and Labuan remained at RM2.15.
The line held.
Two weeks ago, the signals were different. A review was underway. Smuggling was cited. The subsidy burden was called unsustainable. Prime Minister Anwar framed the current arrangement as something provided “although it is not within MA63.”
Sabahans watched closely.
Then came the announcement. And for now, Borneo was spared.
The government cited global pressures—prolonged conflict in West Asia, rising crude prices. They announced enhanced enforcement to address smuggling. They raised prices where they could.
But they did not touch Sabah, Sarawak, or Labuan.
Whether this was caution, calculation, or recognition, the result is the same: the threshold was not crossed.
What Remains
The MOF statement also noted: “Although Malaysia is an oil-producing country, domestic fuel prices are still influenced by the global market because a large portion of the supply is obtained from the international market.”
This is the question that lingers.
Sabah produces sour crude—the very feedstock for diesel. Yet we export that crude and import refined diesel from abroad. The value chain drains Sabah three times over: once at extraction, again through revenue not received, and a third time when subsidies are framed as gifts.
The government has not answered that question.
What Comes Next
For now, Sabahans can breathe. The price at the pump remains RM2.15. The cost of living will not spike because of this announcement.
But the government has also signaled that it will introduce controls on diesel purchases in Borneo to prevent leakage. The long-term direction is still uncertain.
The Majangkim Office will continue to watch. Continue to research. Continue to speak.
Not because this announcement was a victory. Because the deeper questions remain unanswered.
