Transport sector diesel subsidy card system to be trialled from February 1 via six transport companies

A pilot project will be conducted for the testing of the MySubsidi Diesel system by the ministry of domestic trade and cost of living (KPDN), and of the fleet card system used by petroleum companies, according to the New Straits Times, citing Bernama.

This pilot project will be conducted through six goods transport firms, and will be implemented from February 1 this year, according to the report.

The implementation of the project is for the expansion of the granting of subsidised diesel quota to the land transport (goods) sector through the Subsidised Diesel Control System 2.0 (SKDS 2.0), said domestic trade and cost of living minister Datuk Armizan Mohd Ali.

In an earlier statement, the project is to evaluate the effectiveness of the fleet card and MySubsidi Diesel systems with six companies in the transport sector, and the project does not involve individual diesel vehicles.

The six companies that the pilot project will be conducted through are Perceptive Logistic, Multimodal Freight, Mun Chuen Transport, Tan Swee Hee, Sim Yew Enterprise, and Rantau Panjang Haulage. These companies were selected as their skid tank quotas are due to expire this month, NST wrote.

“An engagement session was held to give exposure to pilot companies and petrol companies about the guidelines to apply for quotas and reporting under the MySubsidi Diesel System and the Fleet Card system,” Armizan was quoted as saying in a press conference.

The subsidised diesel for the transport sector is currently given through two channels, namely the skid tank channel which requires manual application, and the fleet card channel which uses the ministry’s MySubsidi Diesel system, the KPDN minister said.

“At this point, only the land transport sector (public) uses the Fleet Card channel while the goods transport sector (land), river passenger boats as well as ferries and boats to the main island still use the Skid Tank channel,” Armizan said.

The use of the fleet card system can reduce misappropriation and smuggling of subsidised diesel as the system will be digitally monitored by KPDN and petroleum companies, while the skid tank system only uses reporting by the companies involved, he continued.

“KPDN will continue to monitor the implementation of this pilot project and get feedback from the industry to ensure the effectiveness of the implementation of the system which is expected to be implemented in the second quarter of this year,” Armizan said.

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