Diesel subsidy: Choose SKDS 2.0 or Budi Madani, not both, applicants told

PUTRAJAYA: Applicants looking to receive diesel subsidies can only apply for either the Subsidised Diesel Control System 2.0 (SKDS) programme or Budi Madani and not both, says Datuk Armizan Mohd Ali.

The Domestic Trade and Cost of Living Minister explained that SKDS applied to companies whereas the Budi Madani program was for small farmers, among others.

“They can only choose one.

“We observed that there are farmers or households that have small businesses and do not have a company.

“Hence, we will have to help them through the Budi Madani programme.

“Further details on Budi Madani will be announced by the Finance Ministry, whereas our ministry handles the SKDS,” he told a press conference after attending the ministry’s SKDS 2.0 open day here today.

This comes after the Finance Ministry announced the start of the Budi Madani diesel subsidy programme, which grants RM200 monthly to eligible individuals, small-scale farmers and commodity growers starting May 28.

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The ministry said the programme is open to all citizens with private diesel vehicles registered with the Road Transport Department (JPJ), excluding luxury vehicles under 10 years of age.

Their vehicles must also be registered with JPJ and have an active road tax.

Separately, Armizan said vehicle types approved to receive diesel subsidies under the SKDS programme was decided by an inter-ministerial committee.

“It also involves engagements with associations and stakeholders,” he said.

He said vehicles selected to receive subsidies through SKDS tend to be those in the logistics sector or those that provided essential services to consumers.

On another matter, Armizan said Labuan was also exempted from the diesel subsidy rationalisation, similar to Sabah and Sarawak.

“We will see how the rationalisation is carried out in the peninsula while also monitoring how the mechanism can be fine-tuned,” he said.

On May 21, Prime Minister Datuk Seri Anwar Ibrahim said subsidies for diesel would be targeted.

The targeted diesel subsidy will first be introduced in the peninsula, while the implementation in Sabah and Sarawak will happen later, he said. He did not specify a timeline for implementation.