Kuala lumpur: The government is set to reevaluate the fixed quota rates of subsidised diesel for various types of land transport vehicles under the Subsidised Diesel Control System (SKDS). This move aims to ensure more precise subsidy distribution that aligns more closely with actual operational needs.
According to BERNAMA News Agency, Domestic Trade and Cost of Living Minister Datuk Armizan Mohd Ali announced the decision following a Cabinet Meeting that discussed the progress of implementing targeted fuel subsidies through mechanisms like BUDI Diesel, BUDI95, SKDS, and the Subsidised Petrol Control System (SKPS). Prime Minister Datuk Seri Anwar Ibrahim has called for improvements in these systems to better address public feedback and manage leakage risks, while considering the country's fiscal position.
Armizan outlined that the upcoming improvements, expected by August, will see diesel quotas under SKDS adjusted to factor in technical aspects such as vehicle weight with load (BDM), engine capacity, lorry category, fuel consumption levels, and operating patterns. This adjustment seeks to align quotas more accurately with the operational costs of companies involved in consumer goods transportation.
The Ministry of Domestic Trade and Cost of Living, the Ministry of Transport, and the Ministry of Finance have been tasked with implementing the Cabinet's policy decisions, including identifying appropriate mechanisms for channeling these subsidies. Immediate follow-up actions are expected to ensure the policy benefits more people.
Additionally, the Cabinet has agreed to extend diesel subsidies to small traders with diesel vehicles like jeeps and pickups, provided these vehicles are registered under a business or company. Previously, eligibility for diesel subsidies was limited to vehicles registered in individuals' names or for consumer goods transport under SKDS.
Owners of private diesel vehicles eligible under BUDI Diesel can apply for an additional 100-litre quota, increasing their total to 300 litres. Applications can be made online via the BUDI MADANI portal or in person at Inland Revenue Board offices, with specific offices in Sabah and Sarawak open to assist with these applications.
During a recent field trip to a petrol station, Armizan expressed satisfaction with the preparedness level of the stations involved in the early access phase for BUDI Diesel in Peninsular Malaysia. Eligible consumers can purchase subsidised diesel at RM2.15 per litre through MyKad verification at participating stations.
The collaboration between the government and the industry has resulted in 10 oil companies confirming their readiness for the implementation of BUDI Diesel, with 4,146 petrol stations nationwide prepared for its full rollout. Through this mechanism, eligible Malaysians will benefit from subsidised diesel at RM2.10 per litre, verified either through MyKad or the company's digital application.