KUALA LUMPUR (June 12): The government has initiated an interim refund mechanism for owners of logistics vehicles approved under the Subsidised Diesel Control System (SKDS) 2.0, but have yet to receive their fleet cards.

The mechanism is meant to facilitate and temporarily reimburse the difference between diesel fuel’s new retail price of RM3.35 per litre and the SKDS 2.0 price of RM2.15 a litre, the Ministry of Finance said in a statement on Wednesday. The measure was announced earlier by the Domestic Trade and Cost of Living (KPDN) Minister Datuk Armizan Mohd Ali.

The government is focused on ensuring the targeted subsidies achieve their objectives, specifically for SKDS 2.0 implementation, so that logistics vehicles can continue to enjoy the subsidised price of RM2.15 per litre, said Finance Minister II Datuk Seri Amir Hamzah.

“The government wants the targeted diesel subsidy scheme’s implementation to run smoothly and will therefore continue to monitor the logistics sector’s developments,” he said. “With SKDS 2.0, there is no reason for logistics businesses to raise prices and consequently burden the rakyat.”

The refunds are a temporary measure by the government to assist logistics service providers from being affected by the sharp change in diesel price, he said.

Logistics vehicle owners who have received approvals from KPDN, but yet to receive their fleet cards will be able to apply for the reimbursement from July 1, 2024 through the Budi Madani MADANI portal at https://budimadani.gov.my.

"They would have to retain their diesel purchase receipts for audit purposes,” the Finance Ministry said. To be eligible for the refunds, logistics vehicle owners would have to apply and receive KPDN’s approval under SKDS 2.0 by June 30, 2024, read the statement.

This interim reimbursement mechanism is intended to cover the additional expenditure incurred until the fleet card is received, up to a maximum of two months, whichever earlier.

In the meantime, the government is urging eligible logistics vehicle owners who have yet to apply for their fleet cards under SKDS 2.0 to do so promptly at https://mysubsidi.kpdn.gov.my.