PUTRAJAYA: A total of 59,940 companies involving 198,046 public and commercial transport vehicles have received approval for diesel subsidy under the Subsidised Diesel Control System (SKDS), as announced by Minister of Domestic Trade and Cost of Living Datuk Armizan Ali.
The Ministry of Domestic Trade and Cost of Living (KPDN) has been actively promoting the expansion of the Budi MADANI: SKDS 2.0 program, which aims to provide targeted subsidies for eligible groups. Initially open to nine types of commercial transport vehicles, the program was expanded on May 13 to include an additional 14 types, bringing the total to 33 types, including the initial 10 types of public transport vehicles under SKDS 1.0.
Applications to join SKDS have seen a significant daily increase following the announcement of targeted subsidy implementation and the new diesel price adjustment that began on June 10. Armizan noted that on June 9, the day before the price float began, KPDN received applications from 40,264 companies involving 156,242 vehicles. The approval of applications increased dramatically on June 10, with 8,584 companies involving 19,612 public and commercial transport vehicles receiving approval.
Immediate approval can be granted through the MySubsidi Diesel system as long as the application is submitted with complete information. Armizan emphasized the importance of eligible transport companies promptly applying through the MySubsidi Diesel system to benefit from the targeted subsidies offered by the government.
The government introduced BUDI MADANI with a provision of a monthly RM200 cash subsidy for eligible groups such as farmers, smallholders, and private diesel vehicle owners. This initiative is part of the government’s efforts to ensure that subsidy allocations are targeted at eligible groups, covering individual assistance (BUDI Individu), farmers and smallholders (BUDI Agri-Commodity), and companies and transport vehicles (MySubsidi Diesel).
Starting June 10, the retail diesel price at all petrol stations in the Peninsula was set at RM3.35 per litre, which is the unsubsidized market price based on the average for May 2024 according to the Automatic Pricing Mechanism formula.
In conclusion, the approval of diesel subsidy applications under the SKDS program has seen a significant increase, with thousands of companies and vehicles benefiting from targeted subsidies. The government’s efforts to ensure that subsidy allocations are targeted at eligible groups are commendable, and eligible transport companies are encouraged to apply promptly to benefit from the subsidies offered.