The government will focus on usage-based allocations rather than a blanket increase for any additional diesel subsidy for land goods transport companies. According to domestic trade and cost of living ministry (KPDN) deputy minister Datuk Fuziah Salleh, the ministry is reviewing available data to ensure subsidies are distributed according to actual needs and operational performance.
She said some stakeholders have proposed an increase in diesel subsidy allocations, but the ministry maintains that any adjustments will be guided by usage patterns and operational efficiency, the New Straits Times reports.
“Under the proposed approach, each company will be assessed based on factors such as the number of lorries it operates, total distance travelled and fuel consumption history. This data-driven method aims to determine the appropriate level of subsidy required for each entity, ” she said.
On June 1, the government revised the fixed quota limits under the Subsidised Diesel Control System (SKDS) for the land goods transport sector to curb subsidy leakages, with each fleet card allocated a quota ranging from 900 litres to 5,000 litres per month. Companies requiring fuel beyond the stipulated limit may submit appeals for quota increases to the petroleum subsidy approval committee, which is managed by the ministry.
Based on MySubsidi data as of April this year, more than 368,000 vehicles have been registered under SKDS, including more than 375,500 goods transport vehicles and around 23,000 public transport vehicles. In May, the SKDS programme was expanded to goods transport operators in Sabah, Sarawak and Labuan.
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” each company will be assessed based on factors such as the number of lorries it operates, total distance travelled and fuel consumption history. This data-driven method aims to determine the appropriate level of subsidy required for each entity, ”
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I wonder how are they going to obtain these historical and real-time data?
… come to your mind that each company is required to supply such data in order to qualify for SKDS?