What criteria will be used to determine eligible recipients for subsidised diesel?

Question

Accepted Answer

Criteria for Subsidised Diesel Eligibility

The Ministry of Finance (MoF) is engaging with the logistics industry to define the criteria for eligible recipients of subsidised diesel, as part of a broader subsidy rationalisation plan outlined in Budget 2024. The aim is to prevent leakage and smuggling while ensuring that essential sectors, such as goods transport companies, continue to benefit from subsidised prices to mitigate the impact on consumer goods.
Industry Consultation on Scope and Criteria

Treasury secretary-general Datuk Johan Mahmood Merican met with logistics industry representatives to gather their perspectives on the proposed targeted diesel subsidy programme. This consultation focused on understanding the specific scope and criteria for eligibility, as well as identifying challenges and potential improvements from the industry's viewpoint. The MoF emphasised that these discussions are crucial for refining the implementation of the subsidy rationalisation.
Continuation of Subsidies for Selected Users

The government intends to maintain subsidised diesel prices for specific users, particularly those in the goods transport sector. This measure is designed to cushion the potential increase in the cost of goods for the public. While the general subsidy is being rationalised, these selected beneficiaries will continue to access diesel at a subsidised rate.
Implementation through SKDS 2.0 and MySubsidi Diesel

The mechanism for rationalising diesel subsidies will be managed in conjunction with the Ministry of Domestic Trade and Cost of Living (KPDN). This will involve the Subsidised Diesel Control System 2.0 (SKDS 2.0) pilot project. Companies identified within the land transport sector, specifically those involved in the transport of goods, will be able to apply for subsidised diesel through KPDN's MySubsidi Diesel system.
Access to Subsidised Diesel via Fleet Cards

Upon successful approval under the MySubsidi Diesel system, eligible companies in the land transport (goods) sector can obtain fleet cards. These fleet cards will be issued by selected oil companies, enabling these businesses to purchase subsidised diesel. This streamlined process aims to ensure that the intended recipients can access the fuel at the subsidised price.

Reading history

Hide →

This history is cleared when the page is closed.

What criteria will be used to determine eligible recipients for subsidised diesel?

Loading

Was this article helpful?

Helpful

Not helpful

Report an issue

1

0

0

Share with friends