KOTA BHARU (April 5): The monthly allocation for the Subsidised Diesel Control Scheme (SKDS) is estimated to have risen to RM2.2 billion in March, nearly three times higher than about RM700 million previously, following a sharp increase in global diesel prices.

Domestic Trade and Cost of Living Minister Datuk Armizan Mohd Ali said the surge in expenditure was driven by escalating global diesel prices.

“As an example, on Feb 26, global diesel prices stood at US$93 per barrel compared with US$239 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 RM2.2 billion compared with RM3.45 billion spent annually in 2025,” he said.

He was speaking to reporters after an engagement session with strategic partners and industry players here Sunday, which was also attended by KPDN enforcement director-general Datuk Azman Adam.

Armizan said the government remains committed to continuing the targeted diesel subsidy programme despite rising prices due to the global energy crisis following the West Asia conflict.

“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 said.

On claims by petrol station operators regarding the burden of purchasing fuel supply upfront, Armizan said the ministry would discuss the matter with the Finance Ministry (MOF).

“Among the approaches we are considering is to discuss with the MOF 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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