Firms involved pleased with subsidised diesel mechanism
PETALING JAYA: The Subsidised Diesel Control System 2.0 (SKDS 2.0) pilot project is progressing smoothly since kicking off on Feb 1, say stakeholders.

They said the fleet card mechanism employed in the government’s pilot project involving six goods transport companies has also ensured accountability and compliance.

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Tan Swee Hee Sdn Bhd director Tan Weng Hooi said the programme has been going well since it started.

He said the fleet card system, which is a special type of payment card dedicated to fuel expenses, also provides additional security and ensures all transactions are authorised and accounted for, besides facilitating companies’ compliance with the law.

“This is because the fleet card system ensures that monitoring on matters such as transactions, consumption and usage can be done online.

“Companies’ compliance with transport regulations, such as road tax validity, is also regularly monitored,” he said when contacted yesterday.

Tan Swee Hee is one of the six companies selected for the pilot project under the Domestic Trade and Cost of Living Ministry.

The other five are Multimodal Freight Sdn Bhd, Perceptive Logistic Sdn Bhd, Sim Yew Enterprise Sdn Bhd, Mun Chuen Transport Sdn Bhd, and Rantau Panjang Haulage Sdn Bhd.

However, Tan said the subsidised diesel quota for each vehicle proved to be insufficient for a vehicle that makes several long-distance return trips.

“But for short trips such as from the Klang Valley to Port Klang, the quota is enough.

“At least with the subsidy, even if diesel prices increase, there’s something for us to fall back on,” he added.

The quota for the company’s category had been set at about 1,800 litres per vehicle per month, according to Tan, who said his company has 30 to 40 vehicles.

Multimodal Freight technical executive Nur Adilah Mohamad Adip said there were some minor hiccups, such as a website glitch, during the first week of the programme, but they have since been resolved.

“So far, it has been okay. Our drivers are able to fuel up at any PETRONAS, Shell or Petron station using the fleet card,” she said when contacted.

However, Nur Adilah said that there were some limitations, such as the government’s earlier directive to limit petrol stations to selling only 250 litres of diesel per transaction.

“For a lorry with a 400-litre fuel tank, this means it would have to visit two separate petrol stations to get a full tank of diesel.

“However, we understand the reason for this limit is so that the petrol station does not exhaust its diesel capacity,” she said.

She said the government had also set a quota of about 200,000 litres of subsidised diesel for the company per month, but the average amount of diesel required by its fleet is about 300,000 litres.

“By right, we would have to foot the bill for the remaining diesel, but we’ll get a fuller picture at the end of the month,” she said.

Petrol Dealers Association of Malaysia president Datuk Khairul Annuar Abdul Aziz said it has been smooth at the petrol stations’ end.

“As far as I know, it’s almost seamless for us. Just new customers are coming in to purchase at the current pump price of RM2.15 per litre using the oil company’s fleet card.

“There is not much change to the petrol stations involved except for maybe a slight increase in diesel sales.

“Previously, these companies purchased commercial fuel at commercial prices and used their own skid tank at the site,” he said.

In a statement on Feb 1, Domestic Trade and Cost of Living Minister Datuk Armizan Mohd Ali said bulk diesel subsidies will be phased out in favour of a retargeted diesel subsidy beginning the second quarter of 2024.

Before this is implemented, the ministry is testing the effectiveness of the new system called the MySubsidi Diesel System through this pilot project.

The system will be used together with a fleet card mechanism issued by oil companies for the implementation of the retargeted subsidy later.

Armizan had said the fleet card system is part of the government’s efforts to switch from the analogue skid tank system.

The fleet card mechanism is meant to ensure that targeted subsidies can be implemented in an integrated manner as well as to minimise leakages and smuggling, he added.

The current pump price for B10 diesel is RM2.15 per litre.
MySubsidi Diesel,Fleet Card,Transport Companies,Domestic Trade and Cost of Living Ministry
PETALING JAYA: The Subsidised Diesel Control System 2.0 (SKDS 2.0) pilot project is progressing smoothly since kicking off on Feb 1, say stakeholders.