The Malaysian government has expanded the Sistem Kawalan Diesel Subsidi (SKDS) to Sabah, Sarawak, and Wilayah Persekutuan Labuan for eligible commercial land transport operators. For fleet managers, understanding the latest SKDS eligibility requirements and application process is essential to securing subsidised fuel and lowering operational costs. 

The government implemented SKDS to achieve three primary goals:

• Targeted Delivery: Ensure diesel subsidies reach eligible businesses directly. 
• Leakage Reduction: Prevent fuel subsidy misuse and illegal distribution. 
• Digital Monitoring: Track diesel purchases in real time through official fleet cards.

Who Is Eligible for SKDS? 

SKDS is not automatically granted to every diesel vehicle on the road. Eligibility depends on vehicle classification, business operations, and strict government criteria. 

Registration is currently open to the land goods transport sector in Sabah, Sarawak, and W.P. Labuan. To qualify, vehicles must meet KPDN (Ministry of Domestic Trade and Costs of Living) regulations and carry valid registration and licensing documentation.

Tip: Always verify your vehicle class through the official MySubsidi portal, as approval depends on specific operator criteria.

Difference Between BUDI Diesel and SKDS 

Understanding which subsidy program fits your business model is crucial for regulatory compliance and financial planning: 

Feature	BUDI DIesel	SKDS (Fleet Card System)
Target Audience	Individual vehicle owners, smallholders & micros-enterprises	Registered commercial land transport companies
Subsidy Method	Direct monthly cash assistance or fixed personal quota	Subsidised rate applied at the pump via fleet card
Quota Allocation	Fixed monthly cap (e.g., 200 litres)	Approved volume quota linked to vehicle size
Expense Tracking	Manual receipts and individual expense logs	Automated central reporting, analytics, and invoicing

How to Apply for a Shell Fleet Card Under SKDS: 

1. Register on MySubsidi: Create an account on the official MySubsidi portal, complete your business profile, and submit the required documentation. 

2. Select Shell as Your Supplier: Choose Shell as your preferred oil company and assign your approved fuel quota percentage. 

3. Receive KPDN Approval: Once processed, download your official KPDN Approval Letter and Approved Vehicle List. Submit Shell Fleet Card Application: Complete the online Shell Fleet Card Application Form with your approval details. 

4. Agent Contact: A representative will contact you within 1–2 business days to verify fleet information. 

5. Card Dispatch: Your fleet cards will be linked to your KPDN quota, processed, and delivered to your company within 14–21 business days.

Maxed Out Your 200-Litre BUDI Diesel Quota? Upgrade to a Shell Fleet Card 

If your commercial operations frequently exceed the standard 200-Litre BUDI Diesel allowance, relying on individual cash assistance can create fuel shortages and administrative headaches. 

Applying for a standard Shell Fleet Card allows your business to easily bridge the gap: 

• Uninterrupted Operations: Keep your vehicles running even after promotional or initial government quotas are exhausted. 
• Centralised Expense Control: Eliminate loose paper receipts by consolidating all fleet transactions into a single tax-compliant invoice. 
• Flexible Credit Terms: Gain access to credit facilities and set custom spending caps per vehicle or driver to prevent overspending. 

Benefits of Partnering with Radius for Your SKDS Fleet Management 

Managing fuel purchases efficiently is just as vital as securing approval. Radius integrates advanced telematics directly into your fleet card system to deliver a complete 360-degree operational view: 

• Performance Analytics: Track precise fuel efficiency across every vehicle to identify waste and cut overhead costs. 
• Fraud Prevention: Receive automated alerts if a fleet card is swiped without the assigned vehicle present at the pump. 
• Real-Time GPS Tracking: Monitor driver locations live and calculate accurate ETAs to improve customer satisfaction. 
• Driver & Vehicle Safety: Integrate dash cams to capture incident video evidence, protecting your team and assets on the road. 

Learn more about Radius Telematics

Optimise Your SKDS Fleet Management Today with Radius Telematics

Securing SKDS approval in Sabah, Sarawak, and Labuan is the first step toward lower operating costs. Pairing your government quota with the right fuel management partner ensures complete control over every litre spent.

Partner with Radius today to streamline your administration, secure your fuel cards, and keep your commercial fleet moving across Malaysia efficiently.