Why are so few transport firms registering for RON95 petrol subsidies?

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Low Registration for RON95 Petrol Subsidies Linked to Fleet Card Application Process

Registration numbers for the Subsidised Petrol Control System (SKPS), designed to provide RON95 petrol subsidies to eligible transport companies, remain low due to the subsequent fleet card application process with oil companies, which is reported to be time-consuming. As of September 20, only 164 companies, involving 249 vehicles nationwide, had completed their SKPS registration, a stark contrast to the estimated 100,000 eligible vehicles. In Sabah, only 89 vehicles are registered under SKPS, and in Sarawak, the figure is a mere six, despite an estimated 4,647 eligible vehicles in these two states combined.
Urgency for Early Registration Amidst Low Uptake

The Minister of Domestic Trade and Cost of Living, Datuk Armizan Mohd Ali, has urged public and goods land transport companies to register for SKPS without delay. This call comes as the number of companies that have completed the registration process is significantly lower than anticipated. While 1,790 companies involving 5,449 vehicles had applied for SKPS by September 20, the final registration figures indicate a substantial gap. The ministry estimates that approximately 100,000 vehicles nationwide are eligible for these subsidies, highlighting the need for greater participation.
Streamlined SKPS Application Process

The registration and application for SKPS itself is described as a simple procedure that can be swiftly approved by the Domestic Trade and Cost of Living Ministry (KPDN) within a day, or even an hour, provided all necessary documents are complete. This ease of process for the initial SKPS approval is intended to encourage companies to come forward. However, the subsequent step, which involves applying for a fleet card from an oil company after receiving SKPS approval, is identified as the bottleneck that contributes to the overall delay.
Clarification on Nationwide Applicability

There appears to be some misunderstanding regarding the scope of the targeted RON95 petrol subsidy, with some companies potentially believing it does not apply to Sabah and Sarawak, similar to the targeted diesel subsidy which is currently limited to Peninsular Malaysia. Minister Armizan clarified that the RON95 petrol subsidy will be implemented nationwide. This targeted subsidy aims not only to benefit the transport companies but also to cushion the public from fluctuations in petrol prices when subsidies are eventually removed.

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Why are so few transport firms registering for RON95 petrol subsidies?

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