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Govt to consider expanding eligibility for subsidised diesel, says Armizan
Published on: Wednesday, June 12, 2024
By: FMT
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Govt to consider expanding eligibility for subsidised diesel, says Armizan
Requests have been made for the inclusion of additional types of vehicles for the transportation of goods in the list of those eligible for diesel subsidies under SKDS 2.0.
PETALING JAYA: The government says it will consider expanding the range of vehicles eligible for diesel subsidies under the second phase of the subsidised diesel control system (SKDS) 2.0.

Domestic trade and cost of living minister Armizan Mohd Ali said several parties had submitted requests to his ministry on improvements to SKDS following the implementation of targeted subsidies on Monday.

“Recommendations include the inclusion of additional types of vehicles for the transportation of goods in the list of those eligible for diesel subsidies under SKDS 2.0,” he said in a statement.

He said another recommendation was for the increase of the current basic quota under SKDS 1.0 for public transport vehicles such as school and express buses.

“The ministry is reviewing the basis for these suggestions and will promptly refer them to the diesel subsidy approval committee for consideration,” he said.

The committee comprises members from his ministry, the finance ministry, the transport ministry, the road transport department, the Land Public Transport Agency, as well as the customs department.

“An appeals committee will then present the recommendations to the Cabinet for consideration and decision,” Armizan said.

Yesterday, tour bus operators pleaded with the government to include them in the list of sectors eligible for diesel subsidies, saying they would otherwise face losses of between RM200 and RM250 a day.

Malaysian Inbound Tourism Association president Mint Leong said the surge in operational costs followed the increase in the price of diesel from RM2.15 per litre to RM3.35 with the implementation of targeted subsidies.

The government had launched the Budi Madani programme to ensure that subsidies are allocated to those who truly qualify and to reduce the burden of those in need, through the provision of monthly cash assistance of RM200.

Last month, the domestic trade and cost of living ministry expanded SKDS 2.0 to include another 14 types of commercial vehicles starting May 13, making 23 types of commercial vehicles eligible for subsidised diesel.

The newly added categories are food catering lorries, food catering vans, food catering buses, service buses, moving service vans, and semi-panel vans. Also included are combination rigid lorries and rigid lorries in open platforms, moving services, waste, curtainsiders, agricultural produce, livestock transport and beverages.

Nine types of vehicles were involved under the first phase of the SKDS 2.0 project.

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