How to get Diesel Subsidy (SKDS 2.0) – The Complete Guide 2024

In 2023, the Malaysian Government has spent RM14.5 billion on diesel subsidies. In an effort to reduce government spending, the government has cut blanket diesel subsidies and floated retail prices to market rate of RM3.35 per litre, about 55% increase from RM2.15. Many fleet operators like you are affected by the drastic increase in diesel price, thus the Madani Government is providing subsidised diesel for select industries through the use of fleet card.

Note: Read the Bahasa Malaysia version of this article here 👉 Panduan Permohonan Subsidi MyDiesel

While blanket diesel subsidy has been cut, some form of subsidies are still given to traders using diesel-powered commercial vehicles, consisting of 10 types of public transportation vehicles and 23 categories of goods transport vehicles.

These businesses include bus and taxi operators under the Subsidised Diesel Control System (SKDS) 1.0 and SKDS 2.0. (View the complete list here)

In Malaysia, the SKDS 2.0 program offers fleet cards to eligible fleets operators to reduce the burden of floated diesel price, manage diesel spending in fleets more effectively, and help prevent price inflation of daily consumer goods. The use of fleet card helps the government to ensure only authorised companies and individuals are able to use subsidised fuel, and directly curb fuel smuggling activities.

The government is expecting to reduce RM4.0 billion yearly from this program. Within the first week of diesel rationalisation, the total diesel sold decreased by 30%, demonstrating its effectiveness in curbing smuggling and unsanctioned use.

This guide provides a comprehensive overview of how to apply for diesel subsidy through SKDS 2.0 and later for fleet cards, detailing the application process, eligibility criteria, and the steps involved. Additionally, it explores how integrating a fleet management system (FMS) with your fleet card can further streamline operations, prevent fuel theft, and reduce issues like excessive idling and speeding.

By understanding the application process and the advantages of using a fleet management system, businesses can optimize their fleet operations, leading to cost savings and improved operational efficiency.

Section 1: Understanding the whole process to get Diesel Subsidy for your company

1.1 Two Applications are required

Fleet operators looking to get Diesel Subsidy will have to go through two applications:

1. Application to buy Subsidized Diesel (SKDS 2.0): This is the most important step as it is your application to the government requesting the ability to purchase diesel at the subsidized price. The government will assess your application based on the published eligibility criteria. Upon approval, you will receive two documents:
   1. a Letter of Approval to purchase subsidized diesel by KPDN (Ministry of Domestic Trade and Costs of Living). Surat Kelayakan Membeli Diesel Bersubsidi
   2. a List of Approved vehicles for subsidised diesel. Senarai Kenderaan yang Layak
2. Application for fuel/fleet cards: Once you receive the two documents above, you may proceed to apply for Fleet cards. The fleet cards (either physical card, or digital wallet) will record your official transactions digitally including the volume and price. Without the fleet cards, you are not able to purchase diesel at the subsidised price.

1.2 What is SKDS 2.0?

Definition and Purpose: SKDS 2.0, or Sistem Kad Diesel Subsidi 2.0, is a government initiative in Malaysia to provide subsidised fuel for companies engaged in transportation of goods. This program offers subsidized diesel fuel through fleet cards, helping businesses control fuel costs, streamline fuel purchasing processes, and reduce administrative burdens associated with fuel expense management.

Key Benefits:

• Cost Savings: The primary advantage of SKDS 2.0 is it provides fleet operators access to the subsidized diesel fuel, which directly reduces the fuel expenditure for businesses.
• Simplified Fuel Management: Fleet cards provided under SKDS 2.0 simplify the process of purchasing fuel, making it easier for businesses to manage and track their fuel expenses.
• Improved Cash Flow: With subsidies and streamlined processes, businesses can better manage their cash flow, allocating funds to other critical areas.
• Enhanced Reporting: The program offers detailed reports on fuel usage, helping businesses monitor and optimize their fuel consumption.
• Reduction of Fuel Waste and Leakages: By integrating with fuel monitoring system offered by KATSANA, fleet operators can reduce fuel consumption and detect fuel wastages & fuel thefts. Read our definitive guide on fuel monitoring system here.

Question: What is the difference between SKDS and Budi Madani program?

The SKDS 2.0 program is meant for transportation companies whereas the Budi Madani program is intended for farmers, smallholders and others. It has been observed that farmers or households that have small businesses often do not have a company, thus Budi Madani program is created to assist them in accessing subsidized diesel.

Question: How do I check my vehicles eligibility to get the subsidized diesel?

To check the vehicles eligibility for diesel subsidy, please submit the vehicle registration number at https://mysubsidi.kpdn.gov.my/portal/check_vehicle

Question: How do I reduce diesel spending and leakages (fuel theft and wasteful use)?

We recommend you to use a diesel monitoring system/fuel monitoring system that is installed onto the vehicle’s external fuel tank. The monitoring system will detect the fuel level, fuel volume and fuel consumption. It will also detect any fuel theft, together with the location and theft volume. Read more about the solution here 👉 Fuel Monitoring System for Fleets – The complete guide

Installation of fuel level sensor require drilling onto the external fuel tank for a permanent insertion of measuring scope.

Interested in Fuel Monitoring System? Contact Us Now

1.3 What is a diesel Fleet Card?

Diesel Fleet Card or ‘Fuel Card’ is a fuel-payment card managed and distributed by oil companies such as Petronas, Shell, Petron, Caltex or BHP to ease purchase of diesel at subsidised price. The card can be in physical form (similar size to a credit card), or in digital form (such as the Petronas Setel app).

Here are some fundamental information that you should know about the fleet card:

• A fleet card is provided by your preferred oil company. You may opt for 3 different brands of fleet cards.
• You will need to apply for fleet card once your SKDS 2.0 application is approved.
• It takes 2-4 weeks to get the fleet cards after an application through respective oil companies
• The card can only be used to purchase subsidised diesel at respective gas stations that you have chosen during SKDS 2.0 application.
• Each fleet card is linked to specific vehicles that have been approved by KPDN. Detail about the vehicle is printed on the card (such as the vehicle registration number).
• Any transaction using the fleet card will be recorded automatically in MySubsidi Diesel portal for monitoring and reporting.
• Fleet card helps reduce abuse of subsidised diesel by allowing only authorised vehicles to refuel.
• Fleet card is the ONLY way to get purchase diesel at subsidised price.

1.4 Eligibility Criteria for diesel subsidy application

Requirements for Applying: The qualify for the diesel subsidy under the SKDS 2.0 program, fleet operators must meet specific eligibility criteria.

• Business Registration: The entity has to be registered under Companies Act 2016, a Sole Proprietorship/Partnership registered under Business Act 1956, or entity registered under Limited Liability Partnership Act 2012.
• Ownership of vehicle: The applicant must own the vehicles, registered under the company / sole proprietor/partnership.
• Valid Roadtax: The vehicles must have active road tax
• Eligible vehicle use: The vehicles must be part of the 23 approved types for diesel subsidy.
• Applicants must be owners or at least executives: Only owners or executives in the company are allowed to apply and deal with KPDN (Ministry of Domestic Trade and Costs of Living)
• No ‘Runners’: Runners are not allowed in any part of the application process
• Precise and truthful information: Applicants are required to submit precise, complete and truthful information
• Diesel for own use only: Volume of approved subsidised diesel is meant for own company use or any vehicles registered under the company. It can not be transferred to other companies/persons or entities.
• Subsidy holder must inform KPDN on changes to logistic operations such as changes to the vehicle ownership.
• Abide all terms specified by KPDN.
• Abide all terms specified by the fleet card providers.
• KPDN has the absolute right to change the terms or retract the approval should the subsidy holder fail to adhere to any of the terms above.

1.5 List of Approved Vehicle Types for Diesel subsidy

To apply for diesel subsidy and the fleet card, your vehicles must be one of the following approved types.

• Public Transport vehicles
  1. Bas Sekolah / School bus
  2. Bas Ekspres / Express bus
  3. Bas Henti-henti / Stage bus
  4. Bas Mini / Mini bus
  5. Bas Pengantara / Feeder bus
  6. Kereta Sewa / Car-Rental
  7. Teksi / Taxi
  8. Van dan Lori Mayat / Hearse
  9. Ambulans / Ambulance
  10. Kereta Bomba / Fire engine
• Good-carrying transports
  1. Lori Rigid – Kargo Am
  2. Prime Movers / Penggerak Utama
  3. Lori Rigid – Luton / Kotak
  4. Lori Rigid – Tangki Air
  5. Lori Rigid – Minuman Botol
  6. Lori Rigid – Refrigerated
  7. Lori Rigid – Tangki Teping
  8. Window Van
  9. Panel Van
• Additional good-carrying transports
  1. Lori Rigid – Curtainsider
  2. Lori Rigid – Hasil Pertanian
  3. Lori Rigid – Kandang Haiwan
  4. Lori Rigid – Combinasi
  5. Lori Rigid – Open Platform
  6. Bas food catering
  7. Van food catering
  8. Lori good catering
  9. Lori Tangki Rigid – Minuman
  10. Semi – Panel Van
  11. Bas Perkhidmatan Bergerak
  12. Van Perkhidmatan Bergerak
  13. Lori Rigid – Perkhidmatan Bergerak
  14. Lori Rigid – Sampah

Section 2: Applying for Diesel Subsidy and Fleet Card

2.1 Preparation of Documents

Before starting the application process, ensure you have all required documents ready. This preparation will streamline the application and reduce the likelihood of delays.

• Business Registration Certificate: Proof of your business’s legal registration in Malaysia. This document verifies your business’s eligibility.
• Fleet Information:
  1. Detailed information about your fleet, including:
  2. Number of vehicles
  3. Types of vehicles (e.g., trucks, vans, cars)
  4. Vehicle registration numbers
  5. Average fuel consumption per vehicle
• Financial Statements: Recent financial statements to demonstrate your business’s operational needs and fuel expenses.
• Operational Details: Information about your business operations, particularly those related to fuel consumption (e.g., routes, frequency of trips, nature of goods transported).
• Other Supporting Documents: Depending on specific requirements, additional documents may be necessary to support your application.

2.2 Submission at MySubsidi portal

1. Access the Official SKDS 2.0 Portal:
   • Visit the official SKDS 2.0 website.
   • https://mysubsidi.kpdn.gov.my/
   • Ensure you are on the correct and secure site to avoid scams and phishing attempts.
2. Register for an Account
   • If you do not already have an account, create one by providing your business details. This typically includes your business name, registration number, contact information, and other relevant details.
3. Fill in the Application Form:
   • Once registered, log in to your account and access the application form for the diesel subsidy. Provide all the required information accurately.
   • The form will ask for:
     • Business information (e.g., name, address, registration number)
     • Fleet details (e.g., number of vehicles, types, registration numbers)
     • Financial information (e.g., recent fuel expenses)
     • Operational details (e.g., routes, frequency of fuel usage)
4. Upload Required Documents:
   • Attach the necessary supporting documents as specified in the form. Ensure all documents are clear and legible.
   • Commonly required documents include:
     • Business registration certificate
     • Fleet information documents
     • Financial statements
     • Any other supporting documents requested
5. Review and Submit:
   • Double-check all information entered in the form and the documents uploaded. Ensure everything is accurate and complete. After reviewing, submit the application.
6. Confirmation and Tracking:
   • After submission, you should receive a confirmation email or notification. Keep this confirmation for your records. You can track the status of your application through your account on the SKDS 2.0 portal.

Note: You may also download the detailed How-To guide on accessing the MySubsidi portal. Click here to download the document 👉 MySubsidi Diesel Application Tutorial (Detailed portal guide).pdf

2.3 Submission for Fleet Card at Oil Company portals

Once KPDN Letter of Approval has been awarded to your company, you may then apply for Fleet Cards. The 5 biggest oil companies in Malaysia have allocated over 1 million fleet cards in preparation for the diesel rationalisation.

You may select to use up to 3 different brands of fleet cards from any of the 5 providers below. Click on the link of each provider to apply for the fleet card.

• • • Shell
      • Call: 1-300-22-8181
      • Link: https://www.shell.com.my/business-customers/shell-fuel-card/apply-for-shell-fuel-card.html
    • Petronas
      • Call: 1-300-88-8282
      • Link: https://www.mymesra.com.my/for-business/smartpay
    • Petron
      • Call: 1-300-2282-11
      • Link: https://www.petronfleetcard.com.my/
    • Caltex
      • Call: 1-800-88-3168
      • Link: https://www.caltex.com/my/business-solutions/fleet-cards/caltex-diesel-government-subsidy-card.html
    • BHP
      • Call: +603-77199499
      • Link: https://www.bhpetrol.com.my/new-to-x-fleet/

Section 3 Frequently Asked Questions

What is the price of subsidised diesel under SKDS 2.0?
The price of subsidised diesel is RM2.15/litre for the 23 types of vehicles.

Can I submit a manual application?
No, application can only be submitted online.

What is the information needed to apply for subsidised Diesel?
You will only need to submit: Company information & company registration number, and your choice of fleet card operators (Petronas, Shell, Petron, Caltex or BHP)

How long is the approval process for SKDS 2.0?
The approval is instant upon complete and truthful submission of information.

Why was my application rejected?
The application may get rejected due to reasons below:

• NRIC/SSM Registration number is incorrect
• The company/business name is not consistent with company registration certificate
• Registration is using old SSM registration number
• Vehicle is not listed among the 23 approved types
• Vehicle is not owned by the company
• Vehicle roadtax has expired

How many fleet card providers can I select during SKDS application?
You can opt for a maximum of 3 fleet card providers (Petronas, Shell, Petron, Caltex, BHP)

What documents do I need to apply for fleet cards?
You will need to bring two documents, which are the Letter of Approval by KPDN, and the list of vehicles approved for diesel subsidy.

How long is the approval process for the fleet cards?
It typically takes fleet card providers between 2 to 4 weeks to process and approve a completed fleet card application.

Anyone I can reach out to for clarification?
You can direct questions to SKDS Call Center during work hours at +603 8882 6769