KOTA KINABALU, Monday, 15 June 2026:
The federal government is called upon to restore domestic fuel prices to pre-Iran War levels. The de-escalation of the conflict and recent admissions by our government’s own economic adviser leave Putrajaya with no reason to maintain war-time inflated rates.
Currently, the war risk premium has collapsed, and global energy markets are reacting sharply to this development, with crude oil prices plummeting from the crisis peak above USD110 to around USD85 levels.
This validates the market foresight I shared at a Sabah-China Chambers of Commerce economics seminar on 16 March 2026, when I predicted that crude oil prices would trend towards pre-war baselines in three months’ time. That trajectory is now confirmed, as supply lines have stabilised.
The international price is trending lower because of steady supply from West Asia, new additional production at Venezuela and the potential to increase production in other oil producing countries.
Data disclosed yesterday by the Prime Minister’s economic adviser, Nurhisham Hussein, detailing how “100 days of the global energy crisis” have been successfully weathered removes any lingering justification for high domestic pricing.
The government clearly possesses the structural and fiscal ability to provide immediate cost relief.
Using fresh fiscal “comfort” to break sticky retail prices
The high fuel prices have hurt ordinary people and businesses, especially industry, for three months.
An aggressive downward adjustment of domestic fuel rates is now essential because retail prices are notoriously rigid and sticky on the way down.
Putrajaya must act now to remove the burden which has forced local manufacturers to absorb uncompetitive energy prices for months. When combined with high maritime shipping costs from West Malaysia, these landing costs have artificially driven up the price of basic goods in Sabah.
Now that the international conflict is showing signs of resolution, the prices of basic goods must not be allowed to stay high.
The budgetary cushion verified by the government’s own economics adviser, who is also the head of the National Economic Action Council, must be utilised to enforce a deep, pre-war fuel price restoration.
Immediate relief, hard-earned after three months of economic hardship, must be delivered to the factories, shipping networks, and rakyat.
Datuk Yong Teck Lee
Sabah Ex-CM
President of Sabah Progressive Party (SAPP)