Pickup vehicles for good transport eligible for diesel subsidy starting June 1, with quotas at 900-5,000 litres

A car filling up diesel at a petrol station in Kuching. Photo credit: DayakDaily

By DayakDaily Team

KUCHING, May 23: Jeep and pickup vehicles used for goods transport will be eligible for the Subsidised Diesel Control System (SKDS) nationwide effective June 1, 2026, with each fleet card assigned a fixed monthly diesel quota ranging between 900 litres and 5,000 litres.

In a statement today, Minister of Domestic Trade and Cost of Living (KPDN) Datuk Armizan Mohd Ali said the expansion marks a significant improvement to the subsidy mechanism, extending eligibility beyond the previous restriction that covered only Cameron Highlands.

“Under the revised framework, goods transport companies across the country that own jeep and pickup vehicles can begin registering for SKDS starting June 1,” he said, adding that this measures were approved during a cabinet meeting on May 20, 2026.

The ministry also announced that individuals using such vehicles for goods transport are encouraged to formalise their operations by registering companies with the Companies Commission of Malaysia (SSM) or the Cooperative Commission of Malaysia (SKM), or through the relevant state authorities in Sabah and Sarawak.

“Vehicle ownership transfers from individual to company names will be required, subject to approval by the Road Transport Department (JPJ), as part of eligibility conditions,” he explained.

Armizan said the expansion is aimed at ensuring broader access to targeted diesel subsidies while strengthening regulatory oversight.

At the same time, the government is tightening controls on subsidy distribution by setting fixed quotas for fleet cards under SKDS, ranging from 900 litres to 5,000 litres per month depending on vehicle type.

The quota structure covers 23 categories of goods transport vehicles and is based on usage data collected over the past two years of SKDS implementation. The revised quota system will also take effect on June 1, 2026, alongside the expanded eligibility.

Armizan emphasised that the adjustments are intended to reduce subsidy leakage and prevent misuse of fleet cards while ensuring allocations better reflect actual operational needs.

Companies requiring additional fuel beyond the fixed quota may submit appeals to the Petroleum Subsidy Approval Committee (JKSP) under KPDN.

Applications can be made via email at [email protected] or at any KPDN counter, with evaluation based on operational needs and monthly usage records in the SKDS system from the time of registration approval for the vehicles involved.

As of May 20, 2026, Armizan reported that a total of 179,716 companies involving 432,495 vehicles have benefited from petrol and diesel subsidies under Subsidised Petrol Control System (SKPS) and SKDS, covering public land transport, goods transport, and water transport sectors.

KPDN has urged eligible operators, including public transport companies, goods land transport companies, and water public transport companies, who have not yet registered for petrol and diesel subsidies to do so through the MySubsidi portal at mysubsidi.kpdn.gov.my.

The ministry also warned that misuse of fleet cards will result in immediate suspension and blacklisting of companies involved, as part of efforts to ensure integrity in the subsidy system. — DayakDaily