Government Expands Diesel Subsidy Eligibility to Jeeps and Pickup Trucks Nationwide

Kuala lumpur: The government has announced a significant enhancement to the Subsidised Diesel Control System (SKDS) by extending eligibility to include jeeps and pickup trucks for the land goods transport sector nationwide, starting June 1. Domestic Trade and Cost of Living Minister Datuk Armizan Mohd Ali confirmed that the decision was made during a Cabinet meeting on May 20.

According to BERNAMA News Agency, the eligibility for these vehicles was previously confined to the Cameron Highlands area. From June 1, 2026, companies within the land goods transport sector across the nation that own jeeps and pickup trucks will be able to register under the SKDS. The government has also agreed to extend diesel subsidy benefits to jeeps and pickup trucks that were previously registered under individual ownership, contingent upon approval for transferring ownership to a company.

Datuk Armizan Mohd Ali encouraged individual operators involved in land goods transportation to register their companies or businesses with the Companies Commission of Malaysia, the Malaysia Cooperative Societies Commission (SKM), or relevant authorities in Sabah and Sarawak, adhering to state laws. Applicants must also meet other eligibility criteria, including transferring vehicle ownership from an individual to a company through the Road Transport Department.

In an effort to strengthen regulatory and enforcement mechanisms against subsidy leakage and misuse of fleet cards, the government has revised the fixed quota limits under SKDS for the land goods transport sector. Each fleet card will have a fixed quota ranging from 900 litres to 5,000 litres per month, determined by the quota limit set for 23 categories of vehicles in the sector. This allocation is based on an analysis of transport usage patterns observed over the two-year implementation period of SKDS, with the revised quota rates effective from June 1.

Companies requiring fuel beyond the stipulated limit can appeal for quota increases to the Petroleum Subsidy Approval Committee (JKSP), managed by the ministry. Appeals may be submitted online via email at [email protected] or physically at the nearest KPDN office. Applications will be evaluated based on actual operational requirements and existing monthly fuel usage records in the SKDS system since approval was granted.

Minister Armizan also urged companies in the public land transport, land goods transport, and water public transport sectors that have not yet benefited from petrol and diesel subsidies to register under the Subsidised Petrol Control System (SKPS) and SKDS. He emphasized that all companies receiving fuel subsidy benefits under these systems must use their fleet cards responsibly, warning that any misuse will lead to immediate suspension of the fleet card and blacklisting of the company.

As of May 20, 2026, a total of 179,716 companies, involving 432,495 eligible vehicles in the public land transport, land goods transport, and water public transport sectors, have received petrol and diesel subsidy benefits. This includes 19,189 companies with 38,817 vehicles under SKPS and 160,527 companies with 393,678 vehicles under SKDS.