Sabah And Sarawak Diesel Stays Subsidised, But Purchase Caps Now Apply

Samuel Chua

27th March 2026 - 4 min read

Diesel in Sabah and Sarawak will remain subsidised at RM2.15 per litre, but each purchase is now subject to a cap based on vehicle type.

If you rely on diesel in East Malaysia, the main change is not the price at the pump, but how much you can buy in a single transaction. This will affect private vehicle owners, public transport operators, and businesses that depend on diesel for daily operations.

Different Vehicles Now Face Different Purchase Limits

The new caps depend on the type and size of the vehicle, which means the amount you can buy in one go will now vary more clearly by use.

Privately owned vehicles, light public land transport vehicles, and goods vehicles are limited to 50 litres per purchase. Public land transport vehicles and goods vehicles not exceeding three tonnes can buy up to 100 litres per purchase, while vehicles exceeding three tonnes can buy up to 150 litres per purchase.

You will still get diesel at the subsidised rate, but refuelling is now more tightly controlled at the pump.

The Subsidy Remains, But Refuelling Is More Restricted

Prime Minister Datuk Seri Anwar Ibrahim said Sabah and Sarawak will continue to receive subsidised diesel at RM2.15 per litre.

This means the government is not removing the subsidy in East Malaysia. Instead, it is keeping the lower price while limiting how much can be bought each time, which may change how you plan refuelling, especially if you are used to filling up in larger amounts.

The Government Says The Caps Are Meant To Protect Supply

The government said the purchase limits are meant to ensure diesel supply remains adequate and is distributed fairly.

Anwar said wider fuel price differences can create stronger incentives for hoarding and smuggling, which is why tighter controls and stricter enforcement are now being introduced. He also said leakages that have already been detected need to be curbed before they worsen.

For diesel users, this means the government is trying to keep subsidised fuel available for its intended purpose instead of allowing it to be diverted through abuse or illegal resale.

East Malaysia’s Conditions Shaped The Decision

The government said the approach was designed with Sabah and Sarawak’s geographical and logistical conditions in mind.

If you live or operate a business in either state, that context matters because fuel access in East Malaysia often comes with challenges that do not always mirror those in Peninsular Malaysia. Longer travel distances, supply routes, and transport conditions can all affect how fuel reaches consumers and businesses. Keeping the subsidised price while imposing purchase caps suggests the government is trying to preserve affordability while tightening control over distribution.

Larger Diesel Users May Need To Plan Refuelling Differently

If you usually buy larger amounts of diesel in a single stop, you may need to adjust how and when you refuel, even though the subsidised price remains unchanged.

This may be more noticeable for transport operators and businesses that depend on regular diesel use, especially if they are used to topping up in higher volumes at one time. The subsidy still lowers fuel costs, but the new limits could reduce flexibility during day to day operations.

The Price Has Been Preserved, But Access Is Now More Tightly Managed

The key change is straightforward. Subsidised diesel at RM2.15 per litre remains in place in Sabah and Sarawak, but each purchase is now capped according to vehicle type.

If you use diesel regularly, this will be less about paying more and more about managing fuel purchases differently. The subsidised rate has been kept, but access is now more closely controlled as the government tries to keep supply available and reduce leakages.

Samuel Chua

Samuel writes about personal finance and financial news, focusing on how banking updates, policies, and promotions affect everyday money decisions. He enjoys making complicated financial topics easier to follow. Outside of writing, he spends his time watching TV shows and occasionally convincing himself he will only watch one episode.

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