Transport Companies in Sabah, Sarawak, and Labuan Encouraged to Register for Diesel Subsidy Benefits

Kota kinabalu: Domestic Trade and Cost of Living Minister Datuk Armizan Mohd Ali has reiterated his call for goods and public land transport companies in Sabah, Sarawak, and Labuan to promptly register under the Subsidised Diesel Control System (SKDS) to enjoy diesel subsidy benefits.

According to BERNAMA News Agency, registration under SKDS will allow eligible companies to access fleet cards and benefit from subsidised diesel rates set at RM2.15 per litre for goods transportation and RM1.88 per litre for public land transport operators. The initiative, aimed at extending the diesel subsidy benefits, was initiated for the goods transport sector in these regions on May 4.

Datuk Armizan highlighted that the mandatory implementation of SKDS fleet cards for obtaining diesel subsidies will be enforced on a future date, which is yet to be announced. He urged companies within the relevant sectors to expedite their registration process to ensure continued access to subsidised diesel for vehicles listed under the 33 eligible categories. This announcement was made during a presentation of the PETRONAS Fleet Card SmartPay to several companies that had secured SKDS approval.

As of June 14, a total of 8,060 companies in Sabah, Sarawak, and Labuan have successfully registered under SKDS, involving 29,631 vehicles. Datuk Armizan emphasized the importance of registration, noting that it allows transport operators to avoid purchasing diesel at prevailing market prices.

The SKDS was introduced as a measure to address diesel subsidy leakages by incorporating a digital monitoring and enforcement mechanism. The fleet card system is specifically designed to ensure that diesel subsidies reach the intended recipients, while simultaneously curbing issues related to smuggling, abuse, and misuse of subsidised diesel by foreign nationals and undocumented migrants.