Armizan Urges Sabah, Sarawak And Labuan Transport Firms To Register For Subsidised Diesel Scheme

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Domestic Trade and Cost of Living Minister Datuk Armizan Mohd Ali has once again called on goods and public land transport operators in Sabah, Sarawak and Labuan to register under the Subsidised Diesel Control System (SKDS) to continue enjoying government diesel subsidies.

He said eligible companies that register under the scheme will receive fleet cards allowing them to purchase subsidised diesel at RM2.15 per litre for goods transportation and RM1.88 per litre for public land transport services.

Armizan noted that applications for the goods transport sector in Sabah, Sarawak and Labuan have been open since May 4.

He said the mandatory use of SKDS fleet cards to access diesel subsidies for both the goods and public transport sectors will be enforced at a later date to be announced by the government.

“Companies operating in these sectors are strongly encouraged to register under SKDS as soon as possible to ensure a smooth transition once the requirement takes effect,” he said after presenting Petronas Fleet Card SmartPay cards to several approved companies.

According to the minister, as of June 14, a total of 8,060 companies across Sabah, Sarawak and Labuan had successfully registered under the scheme, involving 29,631 vehicles.

He stressed that transport operators should not delay registration, as failure to do so could result in them having to purchase diesel at market rates instead of subsidised prices.

Armizan said the SKDS programme was introduced as part of efforts to strengthen control over diesel subsidies and address leakages through a digital monitoring and enforcement system.

“The fleet card mechanism is designed to ensure that diesel subsidies reach the intended recipients and are not abused,” he said.

He added that the initiative also aims to combat subsidy leakages caused by smuggling activities, misuse of subsidised fuel and abuse by foreign nationals and undocumented migrants.

The government believes the digital fleet card system will improve transparency and accountability while ensuring public funds are utilised effectively.

Transport operators can obtain information on eligible vehicle categories and registration procedures through the MySubsidi portal.

The ministry has urged all eligible companies to complete their applications before the mandatory implementation date is announced.

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