PAPAR: The land freight transport sectors in Sabah, Sarawak and Federal Territory of Labuan are advised to register online under the Subsidised Diesel Control System (SKDS) to enjoy the subsidy which will begin on May 4, 2026.
Minister of Domestic Trade and Cost of Living, Datuk Armizan Mohd Ali, said the expansion of the SKDS implementation of distribution of diesel subsidy to the three regions is in line with the announcement made by Deputy Prime Minister Datuk Amar Fadillah Yusof on April 6.
He said the initial phase would involve registration applications by companies in the land freight transport sector across the three regions.
“Through this implementation, vehicles registered under eligible land freight transport companies will able to enjoy diesel subsidies at rates set by the government.
“The expansion of SKDS is expected to ensure a more targeted distribution of diesel subsidies, while helping to reduce operating costs for land freight transport companies in Sabah, Sarawak and Labuan,” he said after officiating the Price Reduction Campaign @ Bataras, Sunday.
Armizan said the current subsidised diesel rate for the sector is RM2.15 per litre.
He added that a fleet card system would be used for diesel purchases by eligible companies registered under SKDS, and they must apply for it from their chosen oil company.
“Applications for the card must be accompanied by an approval letter and a list of vehicles, which can be printed from the SKDS system.”
He advised all land freight transport company owners to make early preparations by ensuring all relevant records and documents are complete and valid.
“First, the applicants must ensure company licences are active. Secondly, the vehicles they intend to register must have valid road tax. Once everything is ready, when the application process is opened on May 4, they can immediately submit their applications online. It is actually quite straightforward — if all documents are complete, the application can even be processed within a day,” he said.
However, Armizan said they are aware of the geographical challenges in Sabah, Sarawak and Labuan whereby apart from submitting the online applications, the Ministry would also conduct mobile registration.
“There might be companies that are not familiar with online registration, so we will provide designated locations at scheduled times for them to submit their applications.
Therefore, the initial phase will begin on May 4, 2026, but further details will be announced on May 1,” he said.
Armizan said the government continues to closely monitor fuel supply levels amid uncertainties arising from the ongoing conflict in West Asia, which could persist until mid-year.
He said the government, in collaboration with Petronas and other oil companies, is actively seeking alternative supply sources to ensure continuity of domestic supply.
“Honestly, efforts to secure alternative supply sources are ongoing. However, we cannot provide a full guarantee for the long term, such as six or seven months ahead.
That said, supply commitments for June and July have already been secured, providing some short-term relief,” he said.
The main challenge at present lies in logistics, including the risk of delays in delivering supplies to ports and onward to destinations.
This has also affected certain areas, including Sabah and Sarawak, due to longer delivery distances, he said.
“The issue we are facing is not a shortage of supply, but rather logistical challenges that may cause delays in delivery. In certain situations, some petrol stations may experience temporary disruptions in diesel supply, but this is not due to a complete depletion of stock. There are stations that have had to temporarily halt sales, but the situation is resolved within a short period as supply is actually available — only delayed in delivery,” Armizan said.
The Government would continue to strengthen daily monitoring to ensure diesel supply remains stable and sufficient nationwide, while ensuring any disruptions are addressed promptly.
