Understanding Diesel Subsidy Reform (June 2024)

On June 10, 2024, the Malaysian government implemented a historic change to diesel pricing. The price jumped from RM2.15 to RM3.35 per litre in Peninsular Malaysia—an increase of RM1.20 per litre (55.8% increase).

For container hauliers, this was devastating:

• Fuel represents 30-40% of operating costs for haulage businesses
• Prime movers consume significant diesel—averaging 35L per 100km
• Daily operations became much more expensive overnight
• Profit margins were severely squeezed for many hauliers

The government cited RM14.3 billion in diesel subsidy costs for 2023 as the reason for reform, targeting leakages and ensuring subsidies reach intended recipients.

What is SKDS 2.0?

The Subsidised Diesel Control System (SKDS) 2.0 is the government’s solution to help commercial logistics vehicles manage diesel costs. Under this program:

SKDS 2.0 Key Benefits

• Fleet cards for eligible vehicles
• RM2.15 per litre (same as pre-reform price)
• Save RM1.20 per litre compared to market price
• 23 categories of goods transport vehicles covered
• Prime movers, container lorries, trailers all eligible

Calculating Your Annual Savings

Let’s break down the actual savings for a typical prime mover operation:

Prime Mover Fuel Savings Example

• Average fuel consumption: 35L per 100km
• Daily distance: 40 km (Port Klang operations)
• Daily fuel use: 14 litres
• Daily savings: 14L × RM1.20 = RM16.80
• Monthly savings: RM16.80 × 26 days = RM437
• Annual savings: RM437 × 12 months = RM5,244

Note: Actual savings vary based on distance, fuel efficiency, and operations. Long-distance prime movers can save up to RM21,000 annually.

How to Apply for SKDS 2.0 Fleet Cards

            1

Prepare Required Documents

Company registration (SSM Form 9 & 24/49), vehicle registration cards, APAD permits, proof of logistics operations (invoices, delivery orders).

            2

Submit Application to Ministry of Finance

Apply through the Subsidised Diesel Control System online portal or visit the Ministry of Finance office. Ensure all vehicle details are accurate.

            3

Wait for Approval (2-4 Weeks)

Processing time varies. Ensure your contact information is current for follow-up communications regarding your application status.

            4

Receive Fleet Cards

Once approved, you’ll receive fleet cards for each eligible vehicle. Use these cards at subsidised diesel pumps to purchase fuel at RM2.15 per litre.

Subsidy Rate Comparison

Category Rate Per Litre Difference from Market

Market Price (Unsubsidised) RM3.35

SKDS 2.0 (Commercial Logistics) RM2.15 Save RM1.20

SKDS 1.0 (Public Transport) RM1.88 Save RM1.47

Fishermen RM1.65 Save RM1.70

Prime Mover Financing While Awaiting SKDS 2.0

Don’t delay your fleet expansion while waiting for SKDS 2.0 approval. Ing Heng Credit provides prime mover financing with:

• 0% down payment - Preserve cash for operations
• 24-hour approval - Don’t miss business opportunities
• Up to 7 years tenure - Manageable monthly payments
• Rates from 2.88% p.a. - Competitive flat rates

Once your SKDS 2.0 fleet cards are approved, your reduced diesel costs will improve your cash flow, making loan repayments even more manageable.

Frequently Asked Questions

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Finance Your Prime Mover Today

• 24-hour approval
• 0% down payment
• Rates from 2.88% p.a.
• Up to 7 years tenure

Or call: {COMPANY_INFO.phone.display}

Estimate Your Savings

Calculate potential annual savings with SKDS 2.0 based on your operations.

Daily km: × 35L/100km × RM1.20 = Daily savings

Daily savings: × 26 days × 12 months = Annual savings

*Estimates only. Actual savings vary based on fuel efficiency and routes.