THE nation’s implementation of the Subsidised Diesel Control System (SKDS) has seen a dramatic rise in its monthly expenditure, reaching RM2.2 billion in March — more than three times higher than the previous RM700 million spent on the scheme.
Minister of Domestic Trade and Consumer Affairs (KPDN) Datuk Armizan Mohd Ali attributed this sharp increase to the rising global price of diesel, which has caused the cost of the subsidy to escalate.
“As an example, in February, the global price of diesel was USD 93 per barrel, but by March 31, the price had skyrocketed to USD239 per barrel, marking an increase of 158 percent,” Armizan explained.
The government now spends RM2.2 billion per month on the SKDS, compared to RM3.45 billion annually last year.
"Previously, the government spent RM700 million per month on SKDS, but this has now increased to RM2.2 billion a month. The total projected government subsidy for energy supplies now stands at RM7 billion per month," he said.
Armizan made these comments during a briefing on the enforcement of Ops Tiris 4.0 (Integrated) and the Supply Control Act of 1961 in Kota Bharu today.
In 2022, the government spent a total of RM3.45 billion on the SKDS, which included RM3.1 billion for the land transport sector and RM344.05 million for public land transport.
This total does not account for other diesel subsidy programs, such as BUDI Agri-Commodity, BUDI Individual, and other diesel subsidies.
Under the SKDS, 33 types of vehicles are eligible to receive subsidised diesel. These include 10 types of public land transport vehicles and 23 types of goods transport vehicles.
Since the launch of the SKDS on June 10, 2024, until March 30, 2026, a total of 150,755 qualifying companies and entities have received approval to participate in the system, involving 368,911 vehicles across the country.
Of these, 93 per cent are goods transport vehicles, while seven percent are public land transport vehicles, Armizan said. - April 5, 2026
