PUTRAJAYA, June 27— The government will review fixed subsidised diesel quotas for several types of land transport goods vehicles under the Subsidised Diesel Control System (SKDS) to ensure the distribution is more accurate and in line with actual operational needs, said Domestic Trade and Cost of Living Minister Datuk Armizan Mohd Ali.
He said the decision was made after yesterday’s Cabinet meeting, during which ministers discussed targeted fuel subsidies through the BUDI Diesel, BUDI95, SKDS, and Subsidised Petrol Control System (SKPS).
“Prime Minister Datuk Seri Anwar Ibrahim has ordered improvements in several aspects to ensure the people’s feedback is met through strategies and approaches that consider the people’s cost of living factors, leakage risk management, and the country’s position and fiscal means,” he said in a press conference after a field visit amid early access for BUDI Diesel here today.
Armizan said that under the improvements, set to be implemented by August, the adjustment of diesel quotas under SKDS will no longer be based on average consumption by vehicle type, but will consider technical factors like loaded weight (BDM), engine capacity, lorry category, fuel consumption levels, and the operation pattern of each vehicle.
“There are vehicles of the same type of transport but different BDMs, so if before this there was a standard fixed quota for the type of transport … whereas in terms of usage we know that transport vehicles with larger BDMs in terms of weight, size and also the size of the load, then the fuel consumption would definitely be more.
“Yesterday the Cabinet decided to make an adjustment to the fixed quota not only by looking at the average previous usage, we have the previous usage record, but also by looking at other technical factors so the quota is more in line with operating costs of companies involved in the transport of consumer goods,” he said.
He added that the Domestic Trade and Cost of Living Ministry (KPDN), the Transport Ministry (MOT), and the Finance Ministry (MOF) were ordered to identify appropriate mechanisms, including the need for modifications and integration into the existing system.
“God willing, KPDN, MOT and MOF will work closely so the policy decisions made by the Cabinet yesterday are implemented immediately so more people would benefit from the targeted fuel subsidy agenda,” he said.
Armizan also the Cabinet agreed to expand diesel subsidies to small traders with pickup trucks registered in the name of a business or company under the class or code of private business use.
He said that previously, diesel subsidies were limited to vehicles registered to individuals for BUDI Diesel, and business vehicles or goods transport companies come under the class or code of use for consumer goods transport for SKDS.
Meanwhile, Armizan said owners of private diesel vehicles like pickup trucks who are eligible for BUDI Diesel and want to apply for a 100-litre quota top-up, bringing the total to 300 litres from the basic quota of 200 litres, may apply online or fill out a physical form.
“(Applications can be submitted) on the official BUDI Madani portal. Anyone who wants to apply physically can go to their local Inland Revenue Board (LHDN) office, there will be an LHDN officer there who will assist,” he said, adding that LHDN offices in Sabah and Sarawak will be open tomorrow to accept BUDI Diesel quota top-up applications.
After a field trip to a fuel station here following the early access to BUDI Diesel for private diesel vehicles in Peninsular Malaysia, Armizan said he is satisfied with fuel stations’ level of readiness.
During the early access period, consumers may buy subsidised diesel at RM2.15 per litre with their MyKad at participating fuel stations.
“The survey covered the level of preparation at the retail level of fuel stations, including the stability of the transaction system, the verification process using MyKad and the oil company’s digital app, training for staff, as well as aspects of customer-friendly services to ensure the smooth operation of the mechanism once it comes into effect,” he said.
Armizan said that as a result of close collaboration between the government and the industry, 10 oil companies — Petronas, Shell, Petron, Caltex, BHPetrol, Five, Smart Stream, Xcel, PETROS and IPTB, with a total of 4,146 stations nationwide — have said they are ready to implement BUDI Diesel.
BUDI Diesel allows eligible Malaysians to enjoy diesel subsidised at RM2.10 per litre at fuel stations using their MyKad or fuel stations’ digital apps.
