The retargeting of subsidies which is planned to be implemented in the second quarter of 2024, would see the supply of diesel and the subsidy involved to result in the fuel not being sent out in bulk to gas stations.
In light of this, Domestic Trade and Cost of Living Minister Datuk Armizan Mohd Ali went to the ground today (Feb 1) to review the implementation of the Subsidised Diesel Control System Pilot Project 2.0 (SKDS 2.0) for the Land Transport Sector on its first day
He explained under the targeting initiatives with regards to the diesel subsidy, the Government is considering granting a special rate to the Land Transport Sector for through the implementation of SKDS 2.0.
Accordingly, before the implementation of this retargeting of the diesel subsidy whose date will be determined later, the Ministry of Domestic Trade and Kos Sara Hidup (KPDN) has pioneered efforts to test the ‘MySubsidi Diesel System’. The system will be used together with a Fleet Card System rendered by oil companies in the implementation of subsidy targeting later.
A number of six pilot companies have received the Fleet Card through a selection of oil companies respectively, so far, which include:
i. Sim Yew Enterprise Sdn. Bhd.
i. Rantau Panjang Haulage Sdn. Bhd.
iii. Mun Chuen Transport Sdn. Bhd.
iv. Tan Swee Hee Sdn. Bhd.
v. Multimodal Freight Sdn. Bhd.
i. Perceptive Logistics Sdn. Bhd.
A total of 3,792 gas stations are involved in the Pilot SKDS 2.0 Project where transporters under the pilot companies can use the fleet card depending on the route, they take across Peninsular Malaysia.
This pilot effort is expected to provide accurate feedback and analysis to KPDN in streamlining the mechanism for retargeting the diesel subsidy. In addition, this initial step can also test the effectiveness of MySubsidi Diesel system and also the Fleet Card system for oil companies before it being implemented to the entire industry.
This Fleet Card usage mechanism is one of the Government’s efforts to switch from the Analog Skid Tank System to ensure targeted subsidies can be implemented in an integrated manner in addition to being able to address cases of leakage and smuggling.
“The Government is always committed to ensure the real needs of the Land Transport (Goods) sector is well taken care off to help reduce the impact of transportation cost increases and in devising an efficient subsidy retargeting plan to suit all target groups especially those under KPDN’s jurisdiction,” he said.
