KOTA KINABALU: Ranau Barisan Nasional (BN) Youth chief Md Nadzmin Kamin has welcomed the Federal Government’s decision to maintain the subsidised diesel retail price at RM2.15 per litre in Sabah, Sarawak and Labuan, but has raised concerns over the implementation of the policy.
He said retaining the subsidised rate reflects Putrajaya’s recognition of Sabah and Sarawak as signatories to the Petroleum Development Act (PDA) 1974, as well as key contributors to the nation’s economic sustainability.
However, Md Nadzmin cautioned that the implementation mechanism warrants closer scrutiny, particularly the enforcement of fuel purchase limits set at 50 litres for light vehicles, 100 litres for transport vehicles below three tonnes, and 150 litres for heavy vehicles exceeding three tonnes.
“We are of the view that this blanket policy has been formulated without due consideration of automotive engineering realities and Sabah’s challenging terrain.
“If implemented without a comprehensive understanding of local dynamics, these limits could disrupt logistics chains and trigger a domino effect on the cost of living,” he said in a statement.
Md Nadzmin urged the Ministry of Domestic Trade and Cost of Living (KPDN) to take into account three key technical realities on the ground.
Firstly, he highlighted the mismatch between vehicle tank capacities and refuelling limits. Four-wheel-drive vehicles (4×4), which are the backbone of mobility in rural Sabah, typically have tank capacities of around 80 litres. A 50-litre cap would prevent a full tank refill in a single transaction.
More critically, he said commercial heavy machinery and logistics lorries often have tank capacities ranging from 300 litres to over 500 litres. A 150-litre limit would force supply chains to operate inefficiently.
Secondly, he pointed to geographical challenges and fuel burn rates. Driving conditions in Sabah frequently involve traversing mountain ranges and covering distances of hundreds of kilometres between districts. Heavy vehicles transporting construction materials, agricultural produce and essential goods require higher engine output, resulting in increased diesel consumption.
“The 150-litre cap is insufficient for long-haul logistics routes, particularly between major West Coast ports and the East Coast,” he said.
Thirdly, Md Nadzmin warned that the policy could drive up operational costs and, ultimately, the price of goods. Sparse distribution of petrol stations in rural areas would compel logistics operators to make more frequent stops, reducing travel efficiency and increasing transportation costs.
Despite these concerns, he expressed full support for the Federal Government’s efforts to curb leakages and strengthen the country’s fiscal position, especially amid global energy uncertainties.
“Domestic controls should not become counterproductive measures that undermine the sustainability of local industries,” he said.
He also called on the Federal Government to consider targeted flexibility or exemptions for commercial logistics, agricultural and construction vehicles operating in Sabah.
Md Nadzmin further proposed the use of geo-tagging technology to identify petrol stations along critical logistics corridors such as the Pan Borneo Highway, enabling more flexible and targeted fuel quotas.
He added that the current political and administrative landscape calls for data-driven solutions, stressing that BN Sabah would continue to act as a strategic partner to the Federal Government while remaining firm in safeguarding the state’s economic sustainability and interests.
