Jeeps, trucks used for business are eligible for Budi Diesel
PUTRAJAYA: Small businesses that own diesel-powered jeeps and pick-up trucks registered under a business or company and classified under the “private business use” category are eligible for subsidised diesel under the Budi Madani Diesel (Budi Diesel) initiative, says Datuk Armizan Mohd Ali.
The Domestic Trade and Cost of Living Minister explained that eligibility to purchase subsidised diesel was previously limited to several categories.
This comprised vehicles registered under individuals or commercial/company goods transport vehicles registered under the consumer goods transportation category for the Subsidised Diesel Control System (SKDS).
“Based on the previous criteria, small businesses who registered their diesel vehicles under the company or had classified their vehicles under the private business use category were ineligible.
“However, the Cabinet in its meeting (last) Friday made the decision to expand the benefit to these groups as well.
“They are small traders who also require assistance,” he told reporters here yesterday.
Armizan earlier observed preparations made by fuel stations towards the implementation of the Budi Diesel initiative in line with its early-phase rollout in Peninsular Malaysia beginning yesterday.
Under this phase, subsidised diesel is sold at RM2.15 per litre through MyKad verification at participating retailers in the peninsula side.
Full implementation will commence nationwide on July 1, with subsidised diesel priced at RM2.10 per litre for eligible Malaysians.
Armizan also said some 4,146 fuel stations nationwide are ready for the full implementation of the Budi Diesel initiative.
On a related matter, Armizan said the government will also review the fixed diesel quota for several categories of commercial freight vehicles under SKDS.
Apart from the average fuel consumption based on the vehicle type, he said the revised quota will also consider, among others, the gross vehicle weight, engine capacity, lorry category and vehicle operating patterns.
“We are aware that similar freight vehicles can have varying gross vehicle weights due to the loads they carry.
“This can also result in varying fuel consumption rates, hence the review to ensure the quotas for land freight vehicles better reflect their operational costs,” he said.
He also said that the Finance Ministry, Transport Ministry and his ministry will conduct the review to tweak the mechanism used.
“This will take some time but we are aiming to run it by early August. This is because the quotas are renewed at the end of each month, and the new quota will be reflected the following day.”
Armizan added that owners of diesel pick-up trucks and jeeps can apply for an additional 100 litres of subsidised fuel per month, bringing their total monthly quota to 300 litres.
Treasury secretary-general Tan Sri Johan Mahmood Merican, who was also present, said the public can apply for the additional quota at budimadani.gov.my or in person at Inland Revenue Board branches.
