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Home Trade Business Petroleum And Gas Management Industry Diesel Subsidy (Skid Tank)

Diesel Subsidy (Skid Tank)

The diesel subsidy was introduced under the 2002 Budget on 19 October 2001. The subsidy was provided to the land transport and river passenger boat sectors. All applications for consideration will be forwarded to the Diesel Subsidy Approval Committee, chaired by the Director, Domestic Trade Division, Ministry of Domestic Trade and Cost of Living, and other members consisting of officers from the Ministry of Finance, Royal Malaysian Customs Department, Land Public Transport Commission, Sabah and Sarawak Commercial Vehicle Licensing Board, Ministry of Transport, Road Transport Department, Malaysian Navy, Sarawak River Authority, Enforcement Division, KPDN and Petroleum and Gas Branch (BPDN), KPDN.

 

Guidelines for the Application of Subsidized Diesel (Skid Tank)

Land Transport Sector

  1. Companies/ Consortiums registered with the Companies Commission of Malaysia (SSM)
  2. Land transport companies must obtain a Class A permit from the Land Public Transport Commission (SPAD)/ Commercial Vehicle Licensing Board (LPKP) and have 16 and more of their own vehicles as shown in Appendix A. The vehicle must only be in the name of the company / consortium applying.
  3. Establishment of consortium is allowed for companies with less than 16 Class A permit vehicles provided that each company has a shareholding in the consortium. The vehicle must be in the name of the company under the consortium.
  4. Specific machinery and vehicles used in complex environments such as airports, ports, construction sites and areas for infrastructure projects, factory areas, logging areas are not eligible for subsidized diesel.
  5. Applicants must have a skid-tank approved by the Enforcement Division, the Ministry of Domestic Trade and Cost of Living in the state or district concerned.
  6. Forms and checklists to be used.

TRANSPORTATION OF GOODS / PUBLIC TRANSPORT

(PERMIT SPAD/LPKP CLASS A)

gambar diesel

River Passenger Sector

  1. Companies conducting river passenger boat service activities must obtain a Passenger Boat License from the Department of Marine / District Offices and a River Passenger Boat Permit from the Rivers Board in the district concerned.
  2. Companies or businesses must be registered with the Companies Commission of Malaysia (SSM) and the Local Authorities.
  3. Use the jetty approved by the Royal Malaysian Customs Department.
  4. Applicants must have a skid-tank approved by the Enforcement Division, the Ministry of Domestic Trade and Cost of Living at the state or district level concerned.
  5. Companies or businesses must have a Wholesale / Retail PDA License and a Schedule of Controlled Goods Retail License under the Supply Control Act 1961 for retail diesel sales.
  6. Should river passenger boat owners request a diesel subsidy through a third party, the owner of the river passenger boat must sign a river passenger boat owner declaration letter authorizing the third party to apply for a diesel subsidy on their behalf.
The completed application should be submitted to the following address:

Chairman
Diesel Subsidy Approval Committee(DSAC)
Petroleum Regulatory Division ,
Ministry of Domestic Trade, and Cost of Living,
Level 4, Podium 1, No 13, Persiaran Perdana, Presint 2,
Federal Government Administration Center,
62623 Putrajaya, Malaysia.

Contact Officer:

En. Najib Zakuan Bin Md Ali
Tel: 03-88827099
Email : najibzakuan.ali[at]kpdnhep.gov.my