Government & Legislation News

Nearly 200,000 Vehicles Approved for Diesel Subsidies under SKDS

The Minister of Domestic Trade and Cost of Living noted a significant surge of SKDS applications on Monday, 10 June 2024.

SKDS (Subsidised Diesel Control System) Now Covers 43 Types of Vehicles

As of Wednesday, 12 June 2024, 59,940 companies—involving 198,046 public and commercial transport vehicles—received approval for diesel subsidies under the Subsidised Diesel Control System (SKDS), according to Minister of Domestic Trade and Cost of Living Datuk Armizan Ali.

In an official statement released on Thursday, 13 June 2024, Armizan noted a significant daily increase in applications to join SKDS following the announcement of targeted subsidy implementation and the new diesel price adjustment starting Monday, 10 June.

The Ministry of Domestic Trade and Cost of Living (KPDN) launched the expansion of Budi Madani: SKDS 2.0 on 7 March, initially including nine types of commercial transport vehicles. On 13 May, SKDS 2.0 was extended to cover an additional 14 types of commercial transport vehicles, totalling 33 types, alongside the ten types of public transport vehicles initially included under SKDS 1.0.

Armizan reported that on 9 June, the day before the new price structure began, KPDN received applications from 40,264 companies involving 156,242 vehicles. “On 10 June, the number of approved applications surged, with 8,584 companies and 19,612 vehicles gaining approval. This marks an increase of 7,097 companies (477 per cent) and 16,584 vehicles (548 per cent) compared to the previous day’s figures of 1,487 companies and 3,028 vehicles,” he said, as quoted from the Bernama News Agency.

He highlighted that immediate approval can be granted through the MySubsidi Diesel system, provided the application includes complete information. “We expect applications to continue rising, particularly until 30 June, which is the deadline for cash reimbursements to SKDS recipients who have not yet received their fleet cards,” Armizan added.

Armizan also urged eligible transport companies to apply promptly through to take advantage of the targeted subsidies offered by the government.

The government introduced Budi Madani with a monthly RM200 (£33.39) cash subsidy for eligible groups, including farmers, smallholders, and private diesel vehicle owners, starting last Monday. This initiative is part of the government’s efforts to ensure that subsidies are directed towards eligible groups, encompassing individual assistance (Budi Individu), farmers and smallholders (Budi Agri-Commodity), and companies and transport vehicles (MySubsidi Diesel).

As of 10 June, the retail diesel price at all petrol stations in the Peninsula was set at RM3.35 (£0.56) per litre, reflecting the unsubsidised market price based on the average for May 2024, as determined by the Automatic Pricing Mechanism formula.

News by date

The Latest

Subscribe to our newsletter and receive a section of articles every weeks

You May Also Like