Malaysia expands subsidized fuel to jeeps, pickups in freight sector

Malaysia's government has extended its subsidized diesel and petrol programs to jeeps and pickup trucks used in the land freight sector, effective June 1. The Ministry of Domestic Trade and Cost of Living announced the expansion, which has already seen 8,862 vehicles registered by early June, primarily diesel pickup trucks.

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Besides being registered under the name of the company or business entity, the eligibility criteria also cover the usage category recorded in the Road Transport Department's Motor Vehicle License and ensure the registration status as a commercial vehicle.

Eligibility for the program requires vehicles to be registered under a company or business entity and classified for commercial use in their Motor Vehicle License. The expansion specifically targets vehicles under the "Goods Rigid" and "Goods Rigid Decon" classes, with weight limits between 950 kilograms and 7,500 kilograms. However, vehicles registered for government, local authority, special categories, or off-road use are excluded.

In addition to broadening eligibility, the government has implemented fixed monthly quotas for subsidized diesel under the program. These quotas range from 900 to 5,000 liters per month, based on analysis of actual usage data from the past two years. This measure is intended to enhance regulatory mechanisms and curb subsidy leakage and fleet card misuse.

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Each fleet card will have a fixed quota between 900 liters to 5000 liters per month, subject to the quota limit set for each of the 23 types of vehicles listed as eligible in SKDS.

For businesses requiring more fuel than their allocated quota, the Ministry of Domestic Trade and Cost of Living has established an appeal process. Companies can apply for additional quota through the Petroleum Subsidy Approval Committee, provided they submit justifications and at least three months of actual usage records. As of early June, eight companies with 82 vehicles have submitted such appeals and are currently under review.

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KPDN will continue to improve the implementation of SKDS and SKPS to ensure fuel subsidies are channeled in a targeted manner and to curb leakage, whether in the form of abuse or smuggling.