KUALA LUMPUR — Around 700,000 private vehicle owners nationwide are set to benefit from subsidised diesel priced at RM2.10 per litre under the BUDI MADANI Diesel (BUDI Diesel) programme, which begins tomorrow.
The Finance Ministry (MOF), in a statement today, said the initiative is expected to benefit about 400,000 diesel vehicle owners in Peninsular Malaysia and a further 300,000 in Sabah, Sarawak and the Federal Territory of Labuan, Bernama reported.
It said the rollout marks a significant expansion compared to the previous BUDI Diesel Individual scheme, which covered only about 180,000 monthly cash aid recipients in Peninsular Malaysia to help offset diesel purchases at market prices.
“Additionally, around 70,000 commercial and goods transport vehicles in Sabah, Sarawak and the Federal Territory of Labuan are now eligible to purchase subsidised diesel at RM2.15 per litre under the Controlled Diesel Subsidy System (SKDS),” it said.
“The MADANI Government will also expand eligibility to include privately registered pickup trucks and jeeps under company names, subject to specified conditions,” the ministry added.
The MOF said the fuel subsidy expansion is aimed at ensuring eligible Malaysians are not forced to pay full market prices, thereby easing cost-of-living pressures, protecting key fuel-dependent sectors, and supporting national economic growth.
Early access to BUDI Diesel for eligible private diesel vehicle owners in Peninsular Malaysia has proceeded smoothly since opening on June 27, 2026, with about 80,000 transactions recorded as of 12pm today.
“It involved the purchase of about 3.2 million litres of subsidised diesel worth nearly RM7 million at RM2.15 per litre. The MyKad verification system at petrol stations has been operating well, with no major issues reported by subsidy recipients or oil companies,” it said.
The ministry also said eligible pickup and jeep owners may apply for an additional quota of 100 litres per month via the official BUDI MADANI portal, subject to conditions.
It added that more than 22,000 applications had been received for the additional allocation as of 9am today.
Meanwhile, the government will introduce a three-month exemption on vehicle ownership transfer fees for diesel vehicles starting tomorrow, covering fees that can currently reach up to RM100 for genuine users operating vehicles registered under close family members’ names.
To facilitate the process, Road Transport Department (JPJ) counters will operate on weekends from July 4 to 26, from 8am to 5pm, at all state JPJ offices and UTC branches.
The MOF also said a mechanism has been introduced to allow transfer of BUDI Diesel eligibility for vehicles used by immediate family members other than the registered owner.
Under the mechanism, the original recipient may transfer the subsidised diesel purchasing eligibility to one immediate family member, namely a spouse, parents, children or siblings, subject to verification and conditions.
“As of 9am on June 30, 2026, nearly 1,000 applications for BUDI Diesel eligibility transfer have been received through the ministry. The transfer is allowed only once and to a single recipient. Once approved, the recipient may use their own MyKad to purchase subsidised diesel based on the original owner’s eligibility,” it said.
The ministry added that the government will continue monitoring the programme to ensure subsidies reach intended recipients, reduce leakages, and safeguard national fuel supply.
Vehicle owners may check eligibility status, monthly limits and further details at BUDI MADANI portal. – June 30, 2026