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14 more vehicle types eligible for targeted diesel subsidy pilot project

ALOR STAR: The Domestic Trade and Cost of Living Ministry will include 14 more vehicle types in the Subsidised Diesel Regulation System Pilot Project 2.0 (SKDS 2.0).

When the scheme was announced in March, only nine types of vehicles were included.

Minister Datuk Armizan Mohd Ali said logistics companies operating the relevant vehicles could submit their application from tomorrow under the Phase 2 of SKDS 2.0.

"This expansion involving 14 types of vehicles is decided following our engagement with the relevant ministries, especially the Transport Ministry and Agriculture and Food Security Ministry.

"We also received an appeal from the relevant industries and among the factors that we took into account are their high volume of diesel usage.

"Secondly, these vehicles are involved in services, either public transport or transport of goods particularly end products to the people," he said after a gathering with the ministry's northern region staff at federal agencies complex in Anak Bukit here today.

Armizan said the government had agreed to expand SKDS 2.0 in order to properly manage and monitor the subsidised diesel scheme with the cooperation of fuel stations using the fleet card.

Through the fleet card system, he said the government was able to have a proper record on the usage trend of logistics companies.

Armizan also urged logistics companies approved to be part of Phase 1 of SKDS 2.0 to proceed with applying for fleet cards from three of the five fuel companies listed by the government.

"We have received a good response from transport companies since announcing Phase 1 of SKDS 2.0 in March but our concern is that most of the companies which have received the ministry's approval have yet to apply for the fleet cards with the fuel companies.

"The fuel companies will require about three to four weeks to issue the fleet card. So, we really encourage them to apply for the fleet cards," he said.

He said it was crucial for companies to have the fleet cards so that they would ready when the government removed the bulk diesel subsidy, which would happen only when a clear social safety net and aid mechanism were in place.

"That is the most important matter because we don't want the vulnerable to be burdened.

"Prime Minister Datuk Seri Anwar Ibrahim has instructed the Finance Ministry and my ministry to improve the targeted subsidy and targeted aid mechanism," he said.

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