"The subsidised diesel control system 2.0 (SKDS 2.0) for land transport begins from 7th March, 2024 in Malaysia, and will involve five petroleum companies and nine types of vehicles," said the minister of domestic trade and cost of living (KPDN) Datuk Armizan Mohd Ali, as reported by local news oulet.

"The nine types of vehicles include general cargo lorries, bottled drinks lorries, refrigerated lorries, luton lorries, prime movers, flour tankers, water tankers and panelled window vans. Vehicle operating companies using the vehicles concerned can submit applications through the KPDN MySubsidi Diesel system, here from today," Armizan further added.

"There are two levels of application to be made, and this is to KPDN for the authorisation of the subsidy, and to the petroleum company for the issuance of the fleet card," continued Armizan.

"Once approved, they can apply for the card from five oil companies of their choice, be it Petronas, Shell, Caltex, BHP or Petron," Armizan said, according to media. "The application approvals by KPDN takes between one to two days, while the issuance of the fleet card by the petroleum companies is estimated to take two to four weeks," he explained further.

"Companies are expected to apply from 7th March in order to ensure that the fleet card can be used from April 1st, the minister said.

"In terms of future planning, the KPDN and the ministry of finance were looking at the need to expand the pilot project to other land transport sectors which are suitable, in order to tackle the risk of diesel supply leakage and smuggling of subsidised diesel more efficiently and effectively," Armizan said.

"This digital method can help reduce the cost of inspection and enforcement which is done physically as we have deployed around 2,200 enforcement personnel so far," he continued.

In January, 2024, the KPDN announced that it is conducting a pilot project for the trialling of the MySubsidi Diesel system along with the fleet card system used by petroleum companies, aimed at implementation from February, 2024.

The pilot project is to be conducted through six logistics companies, to evaluate the effectiveness of the fleet card and MySubsidi Diesel systems.