THE nation’s targeted BUDI Diesel subsidy programme has won support from consumer advocates, who say the initiative represents a more sustainable and equitable approach to fuel subsidy distribution by directing assistance to eligible recipients while reducing leakages and abuse.
Federation of Malaysian Consumers Associations (FOMCA) Chief Executive Officer Dr Saravanan Thambirajah said the subsidised diesel price of RM2.10 per litre demonstrated the government's willingness to refine the country's subsidy framework in response to public feedback.
He said the targeted approach was an improvement over blanket subsidies, which have historically been susceptible to leakages and misuse.
"From the consumers' perspective, the implementation of BUDI Diesel can help reduce the burden of the rising cost of living, particularly for individuals who rely on diesel-powered vehicles for their daily activities and to earn a living.
"At the same time, it also helps to reduce business operating costs.
"If business costs can be maintained at a lower level, pressure on increases in the prices of goods and services can also be reduced, thereby benefiting consumers as a whole," he said.
Saravanan also welcomed the use of MyKad as the purchasing mechanism for subsidised diesel, describing it as a simpler and more transparent system.
He said the mechanism would make the subsidy more accessible to eligible users while helping to curb leakages, smuggling and abuse that have long burdened public finances.
However, he cautioned that the programme's effectiveness would ultimately depend on its implementation.
"Government must ensure that no eligible recipients are left behind, especially vulnerable groups such as senior citizens, persons with disabilities, rural communities and those with limited digital literacy.
"An accessible appeals mechanism, physical assistance channels and responsive customer service must continue to be strengthened so that everyone who qualifies can benefit from this subsidy," he said.
Saravanan added that individual fuel subsidies should not be used to subsidise commercial operating expenses.
"For vehicles owned by companies or employers, diesel costs should rightly be borne by employers as part of the cost of doing business," he said.
He said FOMCA supports the BUDI Diesel programme because it represents a more sustainable model for subsidy management, but stressed that the system should continue to be monitored and refined to protect consumers, minimise leakages and ensure assistance reaches those who genuinely qualify.
Among diesel users, however, views differed on how the subsidy should be delivered.
Che N Intan Zainol, 52, welcomed the MyKad-based purchasing mechanism, saying it was fairer and more convenient than receiving monthly cash transfers.
"If we only need to use MyKad at the fuel pump, there is no need to wait for monthly cash assistance to be credited into our bank accounts.
"I have been using a Toyota Hilux since 2015 and my diesel expenses average about RM600 a month, although they can reach RM1,000 depending on my needs," she said.
Marzita Hassan, 46, favoured direct cash transfers instead, arguing that payments credited directly into recipients' bank accounts would offer greater transparency and flexibility.
"I prefer assistance to be channelled directly into bank accounts because it is more transparent and allows users to decide for themselves how to manage their fuel expenses," she said.
The single mother said rising diesel prices had significantly increased her household and business expenses, as she relies on her Isuzu D-Max for transporting her children and operating her small ice cream catering business.
"I have been using an Isuzu D-Max since 2014 to send my children to school and manage my ice cream catering business, with diesel expenditure averaging around RM500 each month.
"Rising fuel costs also have a ripple effect on the prices of other goods because the logistics, agriculture and fisheries sectors all depend on diesel.
"When diesel prices increase, every sector is affected, including the prices of essential goods. I hope the government takes into account the burden faced by the people, especially those who are self-employed," she said.
Meanwhile, coconut milk trader Amar Affizi Aziz, 42, described the MyKad-based subsidy mechanism as a more proactive and user-friendly approach.
Nevertheless, he expressed hope that the government would eventually reduce the subsidised diesel price to below RM2 per litre to further ease the financial burden on four-wheel-drive owners who depend on diesel-powered vehicles for their livelihoods and daily activities. - July 5, 2026
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