The monthly allocation for the Subsidised Diesel Control Scheme (SKDS) is estimated to have gone up to RM2.2 billion in March, nearly three times more than the previous RM700 million. According to domestic trade and cost of living minister Datuk Armizan Mohd Ali, this surge in expenditure was driven by escalating global diesel prices, reports Bernama.
“As an example, on February 26, global diesel prices stood at USD93 (about RM375) per barrel, compared with USD239 (RM964) per barrel on March 31, representing an increase of 158%. Based on projections following the current upward trend, the monthly allocation required for the implementation of SKDS is estimated at RM2.2bil compared with RM3.45bil spent annually in 2025,” he said.
Despite this, Armizan said the government is staying committed to continuing the targeted diesel subsidy programme despite rising prices due brought on by the ongoing conflict in West Asia that has caused a global energy crisis.
“Under the SKDS, a total of 33 types of vehicles are eligible for subsidised diesel, comprising 10 categories of public land transport vehicles and 23 categories of goods transport vehicles. Registered vehicles can benefit from subsidised diesel at a rate of RM1.88 per litre for public land transport vehicles and RM2.15 per litre for goods transport vehicles,” he explained.
On a separate matter, Armizan said his ministry is discussing with the ministry of finance to alleviate the burden borne by petrol station operators that have to purchase supplies upfront. Among the approaches we are considering is to discuss with the finance ministry how to expedite reimbursement payments so that operators can receive them promptly. We also hope operators will take their own contingency measures so that all parties can sustain operations amid the global energy crisis,” he said.
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this fuel subsidy is riddled with flaws-
1. why peninsular drivers arent given budi05 for diesel? are they supposed to discard their diesel cars and buy a new petrol car?
2. why expats who pay tax to LHDN are denied subsidy while the local b40 leeches are entitled?
3. why malaysian citizens with NRIC are denied subsidy simply because they drive foreign-registered cars? they can speak passable Bahasa and sing nerakaku which more than meets the benchmark for citizenship compared to the 7 FAM footballers.
wow!!.. we should also looks at the amount of diesel used during this period. there shouldn’t be a jump in consumption otherwise that should signify severe leakage elsewehere. enforcement agency needs to be very active now!! otherwise need to raise the subsidised buying price… no choice if leakage continue to rise and rampant
Just import diesel from Borneo. I heard over there is cheaper.