Secretary General of Treasury seeks logistics industry views on targeted subsidy

Yesterday, the Secretary General of Treasury, Datuk Johan Mahmood Merican held a discussion with the logistics industry regarding the implementation of a targeted subsidy program for diesel.

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This discussion was held to seek the views of associations and logistics companies on the scope and conditions for the proposed program, especially to hear the issues faced and measures to improve the implementation.

As presented in the 2024 Budget, the Government will implement the rationalization of subsidies to prevent continued leakage and smuggling. However, in order to reduce the impact on the price of goods for the people, subsidized diesel prices will continue to be enjoyed by selected users such as goods transport companies.

Treasury Discussions

This diesel subsidy rationalization mechanism will be carried out together with the Ministry of Domestic Trade and Cost of Living (KPDN) through the Subsidized Diesel Control System Pilot Project 2.0 (SKDS 2.0).

Once successfully approved under the KPDN Diesel MySubsidy System, companies in the Land Transport Sector (Goods) can obtain a ‘Fleet Card’ from selected oil companies to purchase subsidized diesel.

By implementing the rationalization of this subsidy, the Government will be able to channel the country’s revenue to the people who really need it through Rahmah Cash Donations, Rahmah Basic Donations and other assistance.

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