Monday 12 Oct 2026
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The Ministry of Finance (MOF) said the initiative is expected to benefit about 400,000 private diesel vehicle owners in Peninsular Malaysia, and another 300,000 owners in Sabah, Sarawak and Labuan.

KUALA LUMPUR (June 30): The government's Budi Madani Diesel (Budi Diesel) programme will be rolled out nationwide from Wednesday (July 1), allowing eligible private diesel vehicle owners to purchase subsidised diesel at RM2.10 per litre.

This compares to the unsubsidised diesel price of RM3.97 per litre for the period between July 1 and 8.

In a statement, the Ministry of Finance (MOF) said the initiative is expected to benefit about 400,000 private diesel vehicle owners in Peninsular Malaysia, and another 300,000 owners in Sabah, Sarawak and Labuan.

This marks a significant expansion from the earlier Budi Diesel Individu programme, a targeted diesel subsidy scheme that covered around 180,000 cash aid recipients in Peninsular Malaysia, the ministry noted.

In addition, about 70,000 commercial and goods transport vehicles in Sabah, Sarawak and Labuan will be eligible to purchase subsidised diesel at RM2.15 per litre under the Subsidised Diesel Control System (SKDS).

The government will also extend the programme to company-registered pickup trucks and sports utility vehicles (SUVs), subject to eligibility requirements.

The MOF said early access to the programme, which began on June 27 for eligible private diesel vehicle owners in Peninsular Malaysia, had proceeded smoothly. As of noon on June 30, around 80,000 transactions involving about 3.2 million litres of subsidised diesel worth nearly RM7 million at RM3.15 per litre had been recorded, with no major issues reported in the MyKad verification system at petrol stations.

Eligible owners of diesel-powered pickup trucks and SUVs may also apply for an additional monthly quota of 100 litres through the official Budi Madani portal. As of 9am on Tuesday (June 30), more than 22,000 applications had been received.

The government has set a base eligibility limit of up to 200 litres per month for eligible individuals under the Budi Diesel programme.

The government has also introduced a mechanism allowing approved Budi Diesel recipients to transfer their subsidy eligibility to an immediate family member, such as a spouse, father or mother, child or siblings, subject to stipulated conditions and verification. Nearly 1,000 applications had been received as of 9am on June 30.

Once approved, the recipient can use their own MyKad to purchase subsidised diesel based on the original owner's Budi Diesel eligibility.

The Road Transport Department will waive ownership transfer fees for diesel vehicles for three months beginning July 1 to facilitate transfers among immediate family members.

JPJ counters at all state offices and Urban Transformation Centre branches will also operate on weekends from July 4 to July 26, from 8am to 5pm, to process applications.

The MOF said owners of private diesel vehicles can check their eligibility status, monthly eligibility limits and further information at www.budimadani.gov.my.

The government will continue to monitor the implementation of Budi Diesel to ensure the subsidy reaches eligible users, reduce leakage and safeguard the national supply, it added.

Edited ByS Kanagaraju
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