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Ferry, passenger boat, RORO operators to get diesel subsidy from Jan 1

PUTRAJAYA: The government has agreed to provide a diesel subsidy to ferry, passenger boat, and roll-on roll-off (RORO) ferry operators on the main islands, effective Jan 1.

Transport Minister Anthony Loke said that around 40 operators are expected to benefit from the diesel subsidy.

He said the first claims can be submitted by the involved operators on or before Feb 20.

“The capped price for subsidised diesel for ferries, passenger boats, and RORO ferries on the main islands is set at RM2.50 per litre, with a maximum subsidy rate of 50 sen per litre,“ he told a press conference here today.

Loke added that the diesel subsidy would be provided on strategic routes, namely in Labuan, Langkawi, Pulau Pangkor, Pulau Ketam, Pulau Tioman, Pulau Redang and Penang.

“This subsidy is in line with the MADANI government’s commitment to ensuring the sustainability and effectiveness of public transport services,“ he said.

Among the conditions for applying for the diesel subsidy are that operators must be registered with the Marine Department and must obtain diesel from a bunker or skid tank company, approved by the relevant authorities.

Eligible operators must submit a diesel purchase quota application to the Diesel Subsidy Approval Committee (JKSD) at the Ministry of Domestic Trade and Cost of Living (KPDN).

In addition, diesel subsidy claims must be made monthly based on the rates set by the Ministry of Finance (MOF) each month, with the necessary documentation certified by the Marine Department and submitted to MOF, along with a copy to the nearest customs station for verification, no later than the 20th of the following month.

Loke said that while the subsidy aims to ease operational costs, it is the operators’ responsibility to ensure service quality and safety are enhanced to provide more efficient and competitive services to users.

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