Pilot Project To Test Diesel Subsidy Card System Will Begin Next Month

Photo: Bernama The domestic trade and cost of living ministry's pilot project to test the MySubsidi diesel and fleet card systems across six transportation companies will begin on February 1, according to minister Armizan Mohd Ali.

He explained that the pilot project would provide subsidised diesel quotas to the land transport (goods) sector via the subsidised diesel control system 2.0 (SKDS 2.0).

The six participating companies are Perceptive Logistic Sdn Bhd, Multimodal Freight Sdn Bhd, Mun Chuen Transport Sdn Bhd, Tan Swee Hee Sdn Bhd, Sim Yew Enterprise Sdn Bhd, and Rantau Panjang Haulage Sdn Bhd.

“We engaged with the pilot companies and petrol companies to introduce them to the guidelines for applying for quotas and reporting with the MySubsidi diesel and fleet card systems,” Armizan said during a press conference yesterday.

Earlier, the minister paid a working visit to Syarikat Perceptive Logistics to review their preparations for the pilot project's implementation in Port Klang.

Armizan stated that SKDS was currently provided through two channels: Skid Tank, which requires manual application and processing, and Fleet Card, which uses the MySubsidi Diesel KPDN system.

"At this point, only the land transport sector uses the fleet card channel, while the goods transport sector, river passenger boats as well as ferries and boats to the main island still use the skid tank channel," said the official.

According to Armizan, the fleet card would be able to lower the number of misappropriation offenses and diesel smuggling because the oil companies and the ministry would be able to digitally monitor the system, whereas the skid tank would only require reporting from the relevant companies.

"To ensure the effectiveness of the system, which is expected to be launched in the second quarter of this year, the ministry will continue to monitor this pilot project and get feedback from the industry," he added.