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KOTA KINABALU: Sabah again ends up as the biggest loser, said Sabah Progressive Party (SAPP).

Deputy president Datuk Richard Yong We Kong said Sabah, being an oil producing state has never get to enjoy its own resources.

Datuk Richard Yong. SNT File Pix

Instead, it has to pay higher prices for most of the commodities as compared to the peninsular.

Richard added that Sabah, being a partner in the formation of Malaysia was made to subsidise other states with its oil resources and over the years has made it into the poorest state in the country.

With the recent unprecedented diesel price going above petrol prices, the transportation and manufacturing sectors will be adversely affected, he said in a statement here today.

Diesel is largely used by lorries, buses, factories, fishing boats and its hike will cause inflation.

“Sabah will have to bear higher cost of living in a slow economy,” Richard said.

The PH government that complained about BN way of handling fuel prices has duplicated BN method, prices of fuel changed every week and so unpredictable, he said.

As such, it brought more uncertainties to a gloomy looking economy for year 2019.

“We again called upon the PH government to increase oil royalty to Sabah and to start paying our 40 per cent share of Federal tax revenue soonest,” urged Richard.

“Otherwise, just let Sabah manage her own petroleum.”

The PH government should think of a new pricing mechanism in the structuring of petrol/fuel market prices instead just mimicking pricing mechanisms employed by previous BN government of weekly price adjustment by market fluctuations, according to him.

“The questions are, why the world petroleum prices going down, yet our petrol pump prices going up? Why the lower grade fuel diesel is more expensive than the petrol price?” Richard asked.

The reason why Sabahans purchased 4-wheel drive is because of the atrocious conditions of our roads, he reasoned.

“In the past, the higher costs of maintaining such vehicles are somehow tolerable as the cost of diesel was substantially much cheaper.

“Under the PH government, poorly maintained roads, higher costs of diesel will inevitably mean the increase of price of goods, especially in the interior part of Sabah,” he said.-SabahNewsToday