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Cash payment for subsidized diesel vehicles accepted by July 1

28 June 2024

KUALA LUMPUR: The government will start accepting cash payments from eligible owners of subsidized diesel vehicles under the Subsidized Diesel Vehicle Scheme (SKDS) 2.0. on July 1, 2024.

This facility is only open to qualified logistics vehicle owners who have already been approved under SKDS 2.0 but have not yet received a fleet card. Qualified individuals can apply for cash payments through the BUDI MADANI portal at

According to a Statement released by the Ministry of Finance, the cash payment will cover the difference between the current retail price of diesel, which is RM3.35 per liter, and the SKDS 2.0 price of RM2.15 per liter, for diesel used since June 10, 2024, up to the monthly limit specified in the attachment.

The terms and conditions for this interim repayment mechanism are as follows:

1. Qualified logistics vehicle owners must ensure that they have received approval from the Ministry of Domestic Trade and Consumer Affairs (KPDN) for their SKDS 2.0 application before or on June 30, 2024, but have not yet received a fleet card.

2. Fleet card applications must be submitted to the respective oil company by July 15, 2024.

3. Claims will be accepted starting from July 1, 2024.

4. Claims are subject to a monthly limit on the amount of subsidized diesel that can be claimed, as stated in the attachment.

5. Original purchase receipts for diesel must be kept for auditing purposes.

6. The Ministry of Finance will disburse the cash repayment within 15 working days for each approved claim.

The interim repayment mechanism aims to cover the additional expenses of applicants starting from June 10, 2024, until they receive their fleet card or for a maximum period of two months, whichever comes first.

The Minister of Finance II, YB Senator Datuk Seri Amir Hamzah Azizan, stated that this repayment mechanism is intended to assist eligible logistics businesses in line with the diesel subsidy targeting mechanism, while also reducing the risk of price increases for essential goods.

The government encourages eligible owners of 23 types of commercial logistics vehicles to apply under SKDS 2.0 to avoid transportation cost increases. Qualified logistics business operators can submit their applications under SKDS 2.0 at


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