Malaysia expands diesel subsidy eligibility under SKDS to jeeps and pickup trucks nationwide starting June 1, says minister.
KUNDASANG: The government has agreed to enhance the mechanism for implementing diesel subsidy distribution under the Subsidised Diesel Control System (SKDS) by expanding eligibility to include jeeps and pickup trucks for the land goods transport sector nationwide, effective June 1.
Domestic Trade and Cost of Living Minister Datuk Armizan Mohd Ali said the decision was made during the Cabinet meeting on May 20.
“Previously, eligibility for such vehicles was limited to the Cameron Highlands area. Beginning June 1, 2026, companies in the land goods transport sector nationwide that own jeeps and pickup trucks may apply to register under SKDS,” he told reporters here today.
He said the government had also agreed to extend diesel subsidy benefits under SKDS to jeeps and pickup trucks previously registered under individual ownership, subject to approval for the transfer of ownership to a company.
“Individual operators involved in land goods transportation are encouraged to register their companies or businesses with the Companies Commission of Malaysia, the Malaysia Cooperative Societies Commission (SKM), or relevant authorities in Sabah and Sarawak in accordance with state laws.
“In addition, applicants must fulfil other eligibility requirements, including transferring vehicle ownership from an individual to a company through the Road Transport Department,” he added.
Armizan said the government had also agreed to revise the fixed quota limits under SKDS for the land goods transport sector as part of efforts to strengthen regulatory and enforcement mechanisms to curb subsidy leakage and misuse of fleet cards.
“Each fleet card will be allocated a fixed quota ranging from 900 litres to 5,000 litres per month, depending on the quota limit set for 23 categories of vehicles in the land goods transport sector.
“The total quota allocation is determined based on an analysis of transport usage patterns throughout the two-year implementation period of SKDS. The revised fixed quota rates for each fleet card will take effect on June 1,” he said.
He added that companies requiring fuel usage beyond the stipulated limit may submit appeals for quota increases to the Petroleum Subsidy Approval Committee (JKSP), which is managed by the ministry.
“Appeals can be submitted online via email at [email protected] or physically at the nearest KPDN office.
“Applications will be assessed based on the justification of actual operational requirements and existing monthly fuel usage records in the SKDS system since approval was granted,” he said.
He encouraged companies in the public land transport, land goods transport and water public transport sectors that have not yet enjoyed petrol and diesel subsidies to register under the Subsidised Petrol Control System (SKPS) and SKDS.
Armizan stressed that all companies receiving fuel subsidy benefits under SKPS and SKDS must use their fleet cards responsibly.
“Any misuse will result in the immediate suspension of the fleet card and the company concerned being blacklisted,” he said.
As of May 20, 2026, a total of 179,716 companies involving 432,495 eligible vehicles in the public land transport, land goods transport and water public transport sectors had received petrol and diesel subsidy benefits.
“This includes 19,189 companies involving 38,817 vehicles under SKPS, and 160,527 companies involving 393,678 vehicles under SKDS,” he said.
