KUALA LUMPUR (May 23): The government’s diesel subsidy pilot programme for goods transport vehicles remains open for applications, according to Domestic Trade and Cost of Living Minister Datuk Armizan Mohd Ali. 

The programme, the Subsidised Diesel Control System 2.0 (SKDS 2.0), has signed up 28,000 land transport companies and issued nearly 90,000 fleet cards, Armizan said in a statement on Thursday.

The pilot currently covers 23 types of good transport vehicles - from various types of rigid trucks, prime movers, as well as service vans - and involves the participation of five fuel retailers - Petronas, Shell, Petron, Caltex and BHP.

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The minister noted that SKDS 2.0 remains open for applications through the ministry’s mysubsidi site and urges approved companies to apply for fleet cards with a fuel retailer.

The first phase of SKDS, which covers 10 types of public transport vehicles - from buses, ambulances and taxis - has been proceeding since 2013.  

Armizan reportedly said that the government has yet to set a date to implement diesel subsidy rationalisation even as the Cabinet has agreed to the move in-principle this year.

“For now, the government is ironing out the details on how social aid is given to target groups,” Armizan was quoted as saying by The Star following a ceremony in handing out fleet cards to land transport companies under the SKDS 2.0 on Thursday. 

“Only once the Cabinet is pleased with how social aid is handed out, we will give a date,” he added. 

On Tuesday, Prime Minister Datuk Anwar Ibrahim announced the Cabinet’s agreement to kick the retargeting of subsidies with diesel, and only involve consumers in Peninsular Malaysia.

The move, projected to save RM4 billion in public funds, is to follow the same model under SKDS 2.0 for land transport companies while eligible individuals with diesel vehicles will be supported with cash handouts.

Anwar said that both the B40 and M40 - bottom 40% and middle 40% income groups - will not be affected by the increase in diesel prices.

Currently, diesel is set at a subsidised price of RM2.15 per litre. The rationalisation is expected to align diesel prices in Peninsular Malaysia to be closer to market levels. 

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