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Targeted diesel subsidy won't hurt small firms, refunds guaranteed: Loke | Scoop
Transport Minister Anthony Loke says that the targeted subsidy was not an abrupt decision but was announced beforehand, highlighting that the policy aims to curb diesel smuggling, potentially saving the government billions of ringgit. – Abdul Razak Latif/Scoop pic, June 10, 2024
News

Targeted diesel subsidy won’t hurt small firms, refunds guaranteed: Loke

Minister urges companies awaiting fleet cards to retain receipts for diesel usage, ensuring they will be reimbursed, not disadvantaged by processing delays

Main Author Image
Maithilli Kalaiselvan
Updated
6:40 PM MYT

 

KUALA LUMPUR – Transport Minister Anthony Loke has assured that small companies applying for the targeted diesel subsidy will not be adversely affected and will receive refunds if they have not received their fleet cards.

Loke refuted claims that only larger companies benefit from the subsidised diesel scheme, leaving small companies without fleet cards from the Subsidised Diesel Control System 2.0 (SKDS 2.0).

“That is not true. If an application is approved, the applicant is entitled to receive the fleet cards. The issue likely lies in application processing delays,” he said during a press conference following a memorandum of understanding signing ceremony between Malaysia Rail Link Sdn Bhd with automaker Perodua and Kuantan Port Consortium Sdn Bhd today.

Loke said that the Domestic Trade and Cost of Living Ministry has advised companies that have been approved for the scheme but have not received their fleet cards to retain receipts for future refunds.

“They should keep receipts as proof of diesel usage until they receive their fleet cards, ensuring they will be reimbursed in cash later. This way, no one is negatively impacted,” he said.

Yesterday, Finance Minister II Datuk Seri Amir Hamzah Azizan announced that the price of diesel at all retail stations in Peninsular Malaysia will be set at RM3.35 per litre, which is the unsubsidised market price, from 12.01am today. 

Loke emphasised that the targeted subsidy was not an abrupt decision but was announced beforehand. The government thoroughly analysed the subsidy and its implications before its implementation.

Loke highlighted that the policy aims to curb diesel smuggling, potentially saving the government billions of ringgit. 

“The people have to understand the government. When we apply this subsidy to everybody, the ones who profit from it are the (diesel) smugglers.

“They buy (for subsidised prices) and sell overseas to make a profit. We’ve lost billions of ringgit to smugglers. That’s why we need this policy. 

“That’s why the government is so adamant about implementing this policy. We have a political view to have this change,” he stressed.

Earlier, Domestic Trade and Cost of Living Minister Datuk Armizan Mohd Ali announced that one million fleet cards are currently available for SKDS 2.0.

He said that approximately 410,000 diesel vehicles, which fall under the 23 eligible vehicle categories defined by SKDS 2.0, will be able to use these fleet cards.

To qualify for the subsidy, companies must be registered businesses in Malaysia and have valid and up-to-date road tax for their vehicles, apart from meeting the system’s eligibility criteria. – June 10, 2024

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