THE Government has announced a nationwide reduction in the retail price of subsidised diesel alongside the introduction of a new monthly fuel quota framework for eligible motorists, marking a significant expansion of its targeted fuel subsidy programme.
Finance Minister II Datuk Seri Amir Hamzah said Malaysian citizens who own diesel-powered private vehicles will receive a monthly allocation of 200 litres, which can be used for subsidised diesel and RON95 petrol under the revised scheme.
"This 200 litres entitlement may be used flexibly according to the recipient's actual needs for purchasing subsidised diesel or subsidised RON95, subject to their remaining monthly quota," he said.
Speaking during a press conference at the Ministry of Finance on Monday, Amir Hamzah said Malaysian citizens with valid driving licences who do not own diesel-powered vehicles would continue to receive their existing monthly allocation of 200 litres of RON95 petrol.
He added that owners of four-wheel-drive vehicles and sport utility vehicles (SUVs) would be eligible to apply for an additional allocation of 100 litres of subsidised diesel each month.
The announcement follows confirmation by the Ministry of Finance that the retail price of subsidised diesel will be reduced to RM2.10 per litre nationwide from next month, extending lower fuel prices beyond East Malaysia and aligning the subsidy with a targeted distribution mechanism.
The revised system will use verification through the Malaysian identity card, mirroring the mechanism employed under the BUDI95 programme to ensure only eligible Malaysian citizens receive subsidised fuel.
Under the new framework, non-citizens and individuals who do not qualify for the subsidy will continue to purchase diesel at prevailing market prices.
According to the latest weekly fuel price announcement issued last Wednesday, diesel is currently priced at RM4.37 per litre in Peninsular Malaysia, while the retail price in Sabah, Sarawak and Labuan stands at RM2.15 per litre. Those prices remain effective from 18 to 24 June.
Amir said the Government's calculations indicate that the maximum monthly allocation of 300 litres of subsidised diesel would be sufficient to support daily travel of up to 172 kilometres.
He said the estimate was based on an assumption of 22 working days per month and average fuel consumption of between seven and nine litres per 100 kilometres.
"Based on the 300-litre quota, an individual would be able to make a daily return journey between Marudi and Miri, covering approximately 172 kilometres a day," he said.
Amir added that the subsidy mechanism would operate in the same manner as the BUDI95 programme, with eligible motorists only required to present their MyKad to purchase subsidised diesel.
He said owners of eligible vehicles seeking an additional subsidised diesel allocation could submit their applications through the BUDI MADANI portal at [www.budimadani.gov.my](http://www.budimadani.gov.my), with applications opening from today.
On Sunday, Prime Minister Datuk Seri Anwar Ibrahim announced that the retail price of subsidised diesel would be standardised nationwide at RM2.10 per litre, including in Sabah, Sarawak and Labuan, where consumers had previously enjoyed a subsidised price of RM2.15 per litre. - June 22, 2026
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