Finance Ministry introduces interim refund mechanism for diesel subsidy so logistics businesses won’t raise prices 

KUALA LUMPUR, June 12 — The government is introducing an interim refund mechanism for owners of eligible logistics vehicles approved under the Subsidised Diesel Control System (SKDS) 2.0 but have yet to receive their fleet cards.

This mechanism is a temporary measure to ensure that logistics vehicle owners will be reimbursed the difference between the new diesel retail price of RM3.35 a litre and the SKDS 2.0 price of RM2.15 a litre, the Finance Ministry said in a statement today.

“The government wants the targeted diesel subsidy scheme’s implementation to run smoothly and will therefore continue to monitor the logistics sector’s developments because with SKDS 2.0’s implementation, there is no reason for logistics businesses to raise prices and consequently burden the rakyat,” Finance Minister II Senator Datuk Seri Amir Hamzah said in the same statement.

Logistics vehicle owners who have received approvals from the Domestic Trade and Living Cost Ministry (KPDN), but not their fleet cards can apply for reimbursement from July 1 through the Budi Madani website.

To be eligible for the refunds, logistics vehicle owners must apply and receive KPDN’s approval under the SKDS 2.0 by June 30.

For audit reasons, they must keep their diesel purchase receipts.

The Finance Ministry said the interim reimbursement mechanism is meant to cover the additional expenditure incurred until the fleet card is received, up to a maximum of two months, whichever is earlier.

It reminded eligible logistics vehicle owners who have not applied for fleet cards under SKDS 2.0 to do so quickly.

Putrajaya dismantled the blanket diesel subsidy for peninsular Malaysia on June 10, replacing it with a targeted scheme to prevent foreigners and the wealthy from enjoying it. Sabah and Sarawak is unaffected by this change.

Prime Minister Datuk Seri Anwar Ibrahim who is also the first finance minister acknowledged the criticism from industry players, but said that the move, although unpopular, needed to be done and will save Malaysia some RM4 billion that can be channelled into other programmes for the general public.