Domestic Trade and Cost of Living Minister Datuk Armizan Mohd Ali (3rd right) sharing light moment with representative company after handing out fleet cards to land transport companies under the Subsidised Diesel Control System (SKDS) 2.0 project at Klang. — FAIHAN GHANI/The Star
KLANG: The number of companies that have registered for the diesel fleet card is inching towards 29,000 even though no specific date has been set for the diesel subsidy rationalisation exercise this year.
The figure was revealed by Domestic Trade and Cost of Living Minister Datuk Armizan Mohd Ali as he confirmed that no definitive implementation date has been set, even though the Cabinet has agreed in principle to move away from the current broad-based subsidy for diesel to a targeted form, starting with Peninsular Malaysia.
He said discussions were ongoing, specifically on how aid could be distributed to target groups.
“As long as the Cabinet is not pleased with the mechanism, especially how target groups will receive the aid, we will not set a date.
“Once the government finalises this aspect, an announcement will be made on the start date,” he told a press conference at the Klang Utara rest stop yesterday.
Armizan said the target groups were those with a high dependence on diesel.
“We are also currently working on a mechanism to ensure those eligible for aid will not be left out,” he said, adding that the decision to rationalise diesel subsidies was not done brashly.
“It is part of the government’s reforms to ensure subsidies really reach those in need.
“The government is not abolishing subsidies, but rationalising them,” he said.
He added that the move involved various stakeholders, such as the Finance, Transport, and Agriculture and Food Security ministries, among others.
Responding to concerns about the cost of goods going up once the rationalisation is implemented, Armizan said the ministry would roll out measures to combat profiteering.
“The measures will be announced once there is a start date for the implementation of the diesel subsidy rationalisation,” he said.
On Tuesday, Prime Minister Datuk Seri Anwar Ibrahim announced that diesel subsidies would be rationalised for the peninsula, a move that could potentially save the government around RM4bil annually.
To prevent any drastic increase in the cost of goods and services, he said subsidies will also be given to traders using diesel vehicles.
Earlier yesterday, Armizan together with fuel company representatives handed out fleet cards to land transport companies whose vehicles are eligible for the Subsidised Diesel Control System (SKDS) 2.0 scheme.
He said as of May 22, some 28,000 companies had registered for the fleet cards, with fuel companies issuing more than 90,000 cards, which can be obtained via mysubsidi.kpdn.gov.my.
SKDS 2.0 is currently open only to Malaysia-registered company vehicles that have a valid road tax. Under the programme, 33 categories of vehicles are eligible, with 10 from the public transportation sector, and the rest from the goods transportation sector.
