Govt rolls out subsidised diesel scheme to cover company-owned SUVs, pick-ups

PUTRAJAYA has expanded its targeted diesel subsidy programme to include company-owned private SUVs and pickup trucks, broadening access to subsidised fuel for eligible micro and small businesses under the Subsidised Diesel Control System (SKDS).

The Ministry of Domestic Trade and Cost of Living (KPDN), which administers SKDS, said applications for the newly introduced category opened on Friday, with approved applicants becoming eligible for subsidised diesel from July 15 upon issuance of a fleet card.

Minister of Domestic Trade and Cost of Living (KPDN) Datuk Armizan Mohd Ali said the expansion adds a new Land Transport sector covering Company Private Use — SUVs and Pickup Trucks — to the existing SKDS categories for public transport and the transportation of essential consumer goods, increasing the total number of eligible vehicle types and usage classes under the scheme to 35.

“SKDS distributes subsidised diesel to eligible businesses, companies and cooperatives nationwide through a fleet card system, with fixed quotas determined according to vehicle type, usage classification and technical specifications,” he said in a statement on Friday.

The targeted subsidy framework also includes other government schemes administered by different ministries, including BUDI Diesel for eligible individuals and BUDI Agri-Komoditi for farmers, livestock breeders and smallholders under the Ministry of Finance, as well as the Fishermen Diesel Subsidy Scheme overseen by the Ministry of Agriculture and Food Security.

Armizan explained that to qualify under the new SKDS category, vehicles must be registered with the Road Transport Department as company-owned under the Private Company Use (AE) classification in the MySikap system. Eligible businesses must also be registered as sole proprietorships or partnerships with the Companies Commission of Malaysia or the relevant local authorities in Sabah and Sarawak.

He said the expansion is intended to benefit micro and small business operators that rely on company-owned vehicles for commercial activities, and urged eligible businesses to submit applications through the MySubsidi portal.

Armizan added the expanded eligibility would strengthen the government's targeted subsidy framework while ensuring diesel assistance reaches businesses that genuinely require support for their operations. - July 3, 2026