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The monthly allocation for the Subsidised Diesel Control Scheme (SKDS) is estimated to have gone up to RM2.2 billion in March, nearly three times more than the previous RM700 million. According to domestic trade and cost of living minister Datuk Armizan Mohd Ali, this surge in expenditure was driven by escalating global diesel prices, reports Bernama.
“As an example, on February 26, global diesel prices stood at USD93 (about RM375) per barrel, compared with USD239 (RM964) per barrel on March 31, representing an increase of 158%. Based on projections following the current upward trend, the monthly allocation required for the implementation of SKDS is estimated at RM2.2bil compared with RM3.45bil spent annually in 2025,” he said.
Despite this, Armizan said the government is staying committed to continuing the targeted diesel subsidy programme despite rising prices due brought on by the ongoing conflict in West Asia that has caused a global energy crisis.
“Under the SKDS, a total of 33 types of vehicles are eligible for subsidised diesel, comprising 10 categories of public land transport vehicles and 23 categories of goods transport vehicles. Registered vehicles can benefit from subsidised diesel at a rate of RM1.88 per litre for public land transport vehicles and RM2.15 per litre for goods transport vehicles,” he explained.
On a separate matter, Armizan said his ministry is discussing with the ministry of finance to alleviate the burden borne by petrol station operators that have to purchase supplies upfront. Among the approaches we are considering is to discuss with the finance ministry how to expedite reimbursement payments so that operators can receive them promptly. We also hope operators will take their own contingency measures so that all parties can sustain operations amid the global energy crisis,” he said.
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[[{“value”:”The monthly allocation for the Subsidised Diesel Control Scheme (SKDS) is estimated to have gone up to RM2.2 billion in March, nearly three times more than the previous RM700 million. According to domestic trade and
The post Diesel subsidies cost government RM2.2 billion in March, nearly three times more than before – KPDN appeared first on Paul Tan’s Automotive News.”}]] Read More Paul Tan’s Automotive News