Govt to suspend, revoke diesel fleet cards for subsidy abuse

6 Apr 2026, 11:12 AM
Govt to suspend, revoke diesel fleet cards for subsidy abuse
Govt to suspend, revoke diesel fleet cards for subsidy abuse

PUTRAJAYA, April 6 — The government will take firm action, including suspending and revoking fleet card approvals, against any parties found to be abusing diesel subsidies under the Subsidised Diesel Control Scheme (SKDS).

Deputy Prime Minister Datuk Seri Fadillah Yusof said the decision was agreed upon during a meeting of the High-Level Inter-Agency Coordination Committee on Combating Leakage and Smuggling, which he chaired at the Domestic Trade and Cost of Living Ministry (KPDN) today.

The measure is aimed at ensuring the sustainability and stability of the nation’s energy supply.

“The global energy crisis resulting from the West Asian conflict has increased the risk of misappropriation and smuggling of controlled goods, particularly diesel and petrol,” he said during a briefing on the global energy crisis at KPDN.

Meanwhile, the implementation of the SKDS through fleet cards in the land freight transport sector will be expanded to Sabah, Sarawak, and Labuan.

Fadillah, who is also the Energy Transition and Water Transformation Minister, said the meeting also agreed to designate lead agencies for three identified sectors to curb leakage.

The land sector will be led by KPDN, the border sector by the Royal Malaysia Police, and the maritime sector by the Malaysian Maritime Enforcement Agency.

Meanwhile, to enhance and strengthen regulatory oversight over bunkering activities, the meeting agreed to establish a special task force, Ops Tiris 4.0 (Integrated), for Sabah, Sarawak, and Labuan.

“It will be co-chaired by the Federal Secretary and the State Secretary, with the respective State KPDN serving as the secretariat for both task forces, which will also involve relevant agencies at the state level,” he said.

Several strategic recommendations from the meeting will also be submitted periodically to the National Economic Action Council as an additional measure to ensure the stability of national supply.

In a related development, Fadillah said Ops Tiris 4.0 (Integrated), conducted from March 16 to yesterday, recorded seizures of subsidised goods worth more than RM2 million, with 8,148 inspections resulting in 155 cases.

“Sixty cases involved diesel with seizure values exceeding RM2.1 million, 47 cases involving RON95 (RM51,299), 21 cases of liquefied petroleum gas (RM37,822), and 27 cases involving cooking oil, sugar, and wheat flour,” he said.

The Deputy Prime Minister emphasised that the government remains mindful of global geopolitical uncertainties, particularly the conflict in West Asia.

“We recognise that this situation has significant potential to disrupt global supply chains and trigger instability in energy prices and essential goods.

“However, I would like to stress that the government will not allow the people to be affected by supply disruptions. We have strengthened preparedness through strategic and integrated measures to ensure that supply security in the domestic market remains under control,” Fadillah said.

Also present were KPDN Minister Datuk Armizan Mohd Ali and Home Ministry Secretary-General Datuk Awang Alik Jeman.

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