Applications for refunds under SKDS 2.0 to begin on July 1, says Finance Ministry

PUTRAJAYA: The government will begin accepting applications for refunds from recipients of the Subsidised Diesel Control System (SKDS) 2.0 on July 1, according to the Finance Ministry

This facility is available exclusively to owners of eligible logistics vehicles whose applications have been approved under SKDS 2.0 but have not yet received their fleet cards.

Eligible applicants can apply for the refund through the Budi Madani portal at https://budimadani.gov.my and successful claimants would be reimbursed for the difference between the current diesel fuel price of RM3.35 per litre and the SKDS 2.0 price of RM2.15 per litre, for diesel consumed since 10 June 2024, up to a maximum litre per month.

The terms and conditions for the interim refund mechanism are:

1. Owners of eligible logistics vehicles must have their SKDS 2.0 application approved by the Domestic Trade and Cost of Living Ministry by June 30, 2024, and have not yet received their fleet cards.

2. Applications for fleet cards must be submitted to participating fuel station operating companies by July 15, 2024.

3. Claim submissions will be accepted from July 1, 2024 onwards.

4. The refund litre ceiling of diesel fuel consumed per claim submission, with each submission covering one month's expenses.

5. Diesel purchase receipts must be retained for audit purposes.

6. The Finance Ministry will reimburse successful claim submissions within 15 working days.

7. This interim refund mechanism is intended to cover additional expenditures commencing 10 June 2024 until the fleet card is received or for a maximum of two months, whichever is earlier.

Finance Minister II Datuk Seri Amir Hamzah was quoted as saying that the refund mechanism aims to assist eligible logistics businesses in line with the targeted diesel subsidy mechanism, thus minimising the risk of inducing price increases for essential goods.

"The targeted diesel subsidy scheme aims to address leakages and ensure assistance goes to those intended. This will enhance the management and efficiency of public finances as we strive to propel the nation's prosperity as envisioned in the Madani Economy framework,” he said.

The minister said that it is important to reiterate that the government is committed to ensuring those eligible for assistance will be able to access the benefits of such assistance and that the implementation of the targeted diesel subsidy scheme runs smoothly.

"We are prepared to make any necessary adjustments and improvements to facilitate the nation’s transition to the targeted subsidy initiative,” he added.

The Government urges owners of the 23 types of eligible commercial logistics vehicles to apply for SKDS 2.0 promptly to prevent the escalation of transport costs. Eligible logistics business operators can apply for SKDS 2.0 at https://mysubsidi.kpdn.gov.my. - Bernama