THE Federal Government has approved an expansion of the Subsidised Diesel Control Scheme (SKDS), allowing small traders and registered sole proprietorship businesses to receive fleet card facilities with a monthly quota of 300 litres of subsidised diesel.
Domestic Trade and Cost of Living Minister (KPDN) Datuk Armizan Mohd Ali said the decision was made after the ministry identified small business operators who were affected by the targeted diesel subsidy implementation because they did not meet the scheme’s original eligibility requirements.
He said when SKDS was introduced on July 1, applications for fleet cards were limited to vehicles registered under individual names as well as commercial vehicles and goods transport companies classified under consumer goods transportation.
“However, there were contractors and small traders in Sabah who use diesel-powered vehicles to operate their businesses, but these vehicles were registered under company names rather than individuals.
“This resulted in them being ineligible under the original SKDS category even though the diesel was being used for business purposes,” he said after launching the MADANI Village Adoption Project at Kampung Sekalong.
Armizan said his ministry subsequently brought the matter to the Cabinet after reviewing data from the MySikap system managed by the Road Transport Department (JPJ).
Following the review, the Cabinet approved an expansion of the scheme to allow small companies registered as sole proprietorships to receive a 300-litre monthly subsidised diesel quota through fleet cards, even if their vehicles are registered under company ownership.
“This proves that the Federal Government is always prepared to improve implementation mechanisms as long as we have accurate data to ensure subsidies are targeted towards those who are genuinely eligible,” he said.
Armizan said the move reflected the government’s commitment to ensuring that targeted diesel subsidies do not place additional pressure on small traders who depend on diesel-powered vehicles for their daily operations.
He added that the Ministry of Domestic Trade and Cost of Living (KPDN) would continue monitoring the implementation of SKDS and propose further improvements where necessary.
The expansion is expected to provide greater access to subsidised diesel for eligible small businesses while strengthening the government’s efforts to ensure subsidy support reaches intended recipients. - July 18, 2026
