The government has expanded eligibility under the Subsidised Diesel Control System (SKDS) to include jeeps and pickup trucks used in the land goods transport sector, effective 1 June 2026.
The decision was announced by Domestic Trade and Cost of Living Minister Datuk Armizan Mohd Ali following a Cabinet meeting last Wednesday.
Expanded Vehicle Eligibility
Previously, SKDS eligibility for jeeps and pickup trucks was limited to operators in the Cameron Highlands area. From 1 June, companies in the land goods transport sector nationwide that own these vehicles may apply to register under the scheme.
The expansion also covers jeeps and pickup trucks previously registered under individual ownership, subject to approval for the transfer of ownership to a company. Individual operators are encouraged to register their businesses with the Companies Commission of Malaysia, the Malaysia Cooperative Societies Commission, or relevant authorities in Sabah and Sarawak, and to transfer vehicle ownership through the Road Transport Department before applying.
New Monthly Quota Rates
Alongside the eligibility expansion, the government has revised the fixed quota limits for fleet cards under the SKDS. Each fleet card will be allocated between 900 litres and 5,000 litres per month, depending on the vehicle category, across 23 categories of vehicles in the land goods transport sector. The revised quotas take effect on 1 June 2026.
Companies that require fuel usage beyond their allocated quota can submit an appeal to the Petroleum Subsidy Approval Committee via email at mysubsidi@kpdn.gov.my or in person at the nearest ministry office. Appeals are assessed based on actual operational requirements and existing monthly fuel usage records in the SKDS system.
Registration And Compliance
As of 20 May 2026, a total of 179,716 companies involving 432,495 eligible vehicles across the public land transport, land goods transport, and water public transport sectors were receiving petrol and diesel subsidy benefits under the SKPS and SKDS. Companies in these sectors that have not yet registered are encouraged to do so.
Fleet card holders are reminded that misuse will result in immediate suspension of the card and the company being blacklisted.
The quota revision is part of the government’s broader diesel subsidy rationalisation effort to tighten controls and reduce leakage. Businesses that keep registrations in order and stay within their allocated limits are less likely to face disruptions to their subsidy access.
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