Kuala lumpur: The monthly allocation for the Subsidised Diesel Control Scheme (SKDS) has surged to an estimated RM2.2 billion in March, a significant increase from the previous RM700 million, primarily due to a sharp rise in global diesel prices. Domestic Trade and Cost of Living Minister Datuk Armizan Mohd Ali highlighted the impact of escalating global diesel prices on the scheme's expenditure.

According to BERNAMA News Agency, Minister Armizan detailed the price hike, noting that global diesel prices rose from US$93 per barrel on February 26 to US$239 per barrel by March 31, marking an increase of 158 percent. He projected that if the current trend continues, the monthly allocation for SKDS could reach RM2.2 billion, compared to the RM3.45 billion spent annually in 2025.

During an engagement session with strategic partners and industry players, also attended by KPDN enforcement director-general Datuk Azman Adam, Armizan reassured that despite the rising costs, the government remains steadfast in maintaining the targeted diesel subsidy program amid the global energy crisis triggered by the West Asia conflict.

Under the SKDS, 33 types of vehicles are eligible for subsidised diesel, including 10 categories of public land transport vehicles and 23 categories of goods transport vehicles. Eligible vehicles can avail subsidised diesel at RM1.88 per litre for public land transport and RM2.15 per litre for goods transport vehicles, he explained.

Addressing concerns from petrol station operators regarding the financial strain of upfront fuel supply purchases, Armizan stated that discussions would be held with the Finance Ministry (MOF) to expedite reimbursement payments. He urged operators to implement their own contingency measures to ensure sustainable operations during the ongoing global energy crisis.