Fuziah ‘worried’ slow uptake of remaining subsidised diesel fleet cards could raise prices of goods

Two months after diesel price hike, about 36% of vehicles eligible for subsidised fuel have yet to apply for fleet cards

Out of 410,000 vehicles eligible for subsidised diesel under the fleet card system, just over 259,000 have had applications submitted, says Deputy Domestic Trade and Cost of Living Minister Fuziah Salleh. – Halim Salleh/Scoop file pic, August 12, 2024

KUALA LUMPUR – Failure to register and obtain a fleet card by those eligible under the Subsidised Diesel Control System (SKDS) could potentially cause an increase in prices of goods, Deputy Domestic Trade and Cost of Living Minister Fuziah Salleh said.

She said this in urging those eligible to register for their fleet cards as soon as possible.

Out of 410,000 vehicles eligible for subsidised diesel under the fleet card system, just over 259,000 have had applications submitted, Fuziah said, reported Bernama.

This gap is worrisome, she said, and could potentially result in an increase in the prices of goods.

“Please apply so that it can help control the prices of goods,” she told reporters after an event to open the new branch of a local restaurant here today.

Fuziah acknowledged delays in fleet card issuance and said the ministry was holding discussions with oil companies, urging them to enhance efficiency and expedite the process.

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Fuziah has said vehicle owners eligible for a fleet card consider applying for a cash card as an alternative. – Alif Omar/Scoop file pic, August 12, 2024

“We understand that there is an increase in (fleet card) applications in a brief period, but we have requested the oil companies to assist us in speeding up the process by adding staff and implementing other measures,” she said.

Fuziah also suggested vehicle owners eligible for a fleet card consider applying for a cash card as an alternative.

“This cash card can be used to purchase diesel at a subsidised price at petrol stations and is meant for verification purposes only,” she said.

SKDS was implemented after the government raised the retail price of diesel to RM3.35 per litre effective June 10 in the peninsula. The fuel is still subsidised at RM2.15 per litre in Sabah and Sarawak, where the majority of consumers use diesel vehicles.

For the current week of August 8 to 14, however, the retail price of diesel in the peninsula has dropped to RM3.30 per litre in line with the trend in global crude oil prices.

Raising the diesel price is part of Putrajaya’s efforts to cut its spending on subsidies and to ensure that only targeted groups are reached. This involves the use of fleet cards for 33 types of vehicles in the logistics and public land transport sector eligible for subsidised diesel to ensure the price of essential goods remain stable. – August 12, 2024