Sarikei: The federal government has been urged to review the diesel subsidy policy in Sarawak by increasing the monthly subsidised diesel quota to at least 300 litres and expanding the Subsidised Diesel Control System (SKDS) to better meet the state’s geographical and transportation needs.
The call was made by DAPSY Sarawak Chief Roderick Wong, who said the current subsidy framework does not adequately address the realities faced by Sarawakians, particularly those in rural areas who rely heavily on diesel-powered vehicles.
In a statement, Wong acknowledged that the government’s diesel subsidy rationalisation initiative was introduced to curb fuel smuggling, strengthen diesel usage management and mitigate the impact of global oil price fluctuations. However, he said Sarawak’s vast land area, scattered population, and limited public transport system require a more flexible approach.
“Sarawak’s geographical conditions, population distribution, and transportation situation differ significantly from those in Peninsular Malaysia. The government should take local realities into account instead of adopting a one-size-fits-all national approach,” he said.
Wong said the additional 100 litres of subsidised diesel currently provided to eligible private pickup truck and jeep owners was a positive step but remained insufficient.
“Many people, especially those in rural areas, rely heavily on diesel vehicles in their daily lives, and the current quota is unable to meet actual demand,” he said, proposing that the monthly allocation be increased to at least 300 litres and credited automatically to eligible vehicle owners without requiring additional applications.
He also urged the Federal Government to review the diesel quota transfer mechanism, saying the current system was impractical for families whose vehicles are registered under one spouse’s name but mainly used by the other, while financing agreements prevent ownership transfers.
Wong welcomed the inclusion of company-registered pickup trucks and jeeps under the SKDS, with applications opening on 3 July 2026 and approved operators becoming eligible for subsidised diesel from 15 July 2026. He encouraged eligible businesses to apply promptly and called for greater publicity and consultation services to improve understanding of the application process.
He also urged the government to extend the subsidy scheme to dump trucks and operators transporting sand, gravel, construction materials, and cement, saying these vehicles are essential to infrastructure development and public works.
“Excluding these vehicles will increase operating costs for the construction and transport industries, which could eventually lead to higher project costs and market prices,” he said.
Wong also called for pickup trucks operated by religious organisations to be included in the subsidy scheme, noting that they are frequently used for charitable and relief work.
