MOF open to discuss the quota for subsidised diesel

Tuesday 17 Sep 2024

KUALA LUMPUR (June 12): The Ministry of Finance (MOF) is open to discuss the quota allocated under the Subsidised Diesel Control System (SKDS) for any express bus operators, said Finance Minister II Datuk Seri Amir Hamzah Azizan.

“We have a mechanism where we can accept proposals or queries from those eligible [for SKDS 1.0] if they can exemplify an increase in usage [of the quota], and we can discuss it with the relevant ministries,” Amir told reporters at the Bank Negara Malaysia's Sasana Symposium 2024 on Wednesday.

"If it appears true that its usage [of the quota] is increasing, we can increase the available quota,” Amir said.

Local bus operators have urged the government to review the quota for the SKDS, as they claimed that the hike in diesel prices have affected them following the subsidy rationalisation that took effect on Monday.

SKDS is a platform for selected public and goods vehicles to continue receiving diesel subsidies through a fleet card system. The first phase or SKDS 1.0 is for land public transport, including school buses, express buses, ambulances and fire engines, where the diesel price remains at RM1.88. The second phase is SKDS 2.0, where logistics vehicles are eligible for diesel priced at RM2.15 per litre.

Earlier on Wednesday, the Domestic Trade and Cost of Living Minister Datuk Armizan Mohd Ali said the government was considering adding several types of freight transport vehicles to the list of transportation eligible for diesel subsidies under SKDS 2.0.

At the same time, he said the government was mulling the expansion of quota for public transport under SKDS 1.0, such as for school and express buses.

The government has also developed an interim mechanism involving cash reimbursement to owners of logistics vehicles that have been approved under SKDS 2.0, but have yet to receive their fleet cards.

Edited ByTan Choe Choe

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