MySubsidi diesel pilot programme to commence next month

KUALA LUMPUR: Beginning February 1st, the Ministry of Domestic Trade and Cost of Living (KPDN) is set to launch a pioneering pilot project to evaluate the effectiveness of the MySubsidi Diesel system, in collaboration with an oil company's Fleet Card system. This project will involve six handpicked freight transportation companies, marking a significant step in enhancing diesel subsidy distribution.

Minister Armizan Mohd Ali highlighted that the initiative aims to extend the reach of subsidized diesel to the land-based goods transportation sector via the advanced Subsidized Diesel Control System 2.0 (SDCS 2.0). The participating companies, chosen for their imminent expiry of Skid Tank quotas, include Perceptive Logistic Sdn Bhd, Multimodal Freight Sdn Bhd, Mun Chuen Transport Sdn Bhd, Tan Swee Hee Sdn Bhd, Sim Yew Enterprise Sdn Bhd, and Rantau Panjang Haulage Sdn Bhd.

To ensure smooth implementation, Armizan noted that the pilot companies and oil firms have undergone comprehensive engagement sessions to acquaint them with the application and reporting processes of both the MySubsidi Diesel and Fleet Card systems.

Currently, the SDCS facilitates subsidy distribution through two methods: the manual Skid Tanks and the digital Fleet Cards integrated with KPDN's MySubsidi Diesel System. While public land transportation sectors presently use Fleet Cards, sectors like goods transportation and maritime transit still depend on Skid Tanks.

The Fleet Card's digital monitoring, overseen by KPDN and oil companies, is anticipated to significantly curb illicit activities like misappropriation and smuggling of subsidized diesel, in contrast to the Skid Tank's reliance on company reporting.

KPDN is committed to diligently overseeing this pilot, gathering industry feedback to ascertain the system's efficiency. The full implementation of this system is expected in the year's second quarter, marking a crucial stride towards a more transparent and efficient management of government subsidies. This is aimed at bolstering essential economic sectors while reducing potential misuse and inefficiency.

The introduction of MySubsidi Diesel underscores the government's dedication to refining and regulating the distribution of diesel subsidies. This strategic move seeks to ensure that the subsidies are effectively channelled to their rightful beneficiaries, especially those sectors heavily dependent on diesel, such as transportation and logistics. This initiative reflects a commitment to sustainable and responsible subsidy management, rather than signaling the impending withdrawal of diesel subsidies.

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