SKDS 2.0 pilot project aims to provide mechanism for retargeting of diesel subsidy

SEPANG: The Subsidised Diesel Control System 2.0 (SKDS 2.0) for land transport, a pilot project by the Domestic Trade and Cost of Living Ministry, to be implemented for two months from today, aims to provide a mechanism for the retargeting of diesel subsidies.

Its minister, Datuk Armizan Mohd Ali, said it was to get feedback from the industry to ensure the effectiveness of the implementation of the system which is expected to be implemented in the second quarter of this year,“

The project, involving six companies, aims to test the effectiveness of the MySubsidi Diesel System and also the Fleet Card system, he told the media after observing the implementation of the Fleet Card for the Land Transport (Goods) Sector, here today.

Armizan said the mechanism of using the Fleet Card is one of the government’s efforts to switch from the Analog Skid Tank System to the Fleet Card to ensure that targeted subsidies can be implemented in an integrated manner.

It is also to ensure cases of leakage and smuggling are kept to a minimum, he added.

He said feedback obtained from the pilot project will be discussed with the Ministry of Finance (MoF) before the report is tabled to the Cabinet.

According to him, a total of 3,792 gas stations in the peninsula are involved in the SKDS 2.0 Pilot Project.

“On Feb 9, I will meet with the enforcement agencies and then the Sarawak and Sabah governments to discuss what methods we can use to strengthen the existing control and enforcement mechanisms,” he said.

The government, he said, is committed to ensuring the real needs of the Land Transport (Goods) Sector to help reduce the impact of transport costs, especially on the price of goods. -Bernama