THE government has expanded the BUDI Diesel subsidy transfer facility with immediate effect, allowing registered owners with more than one diesel vehicle to transfer their subsidy entitlement to a maximum of three vehicles.
Prime Minister Datuk Seri Anwar Ibrahim said the facility would also be opened to any eligible Malaysian citizen, rather than being limited to immediate family members, following feedback from the public and elected representatives, particularly in Sabah and Sarawak.
“The government has agreed to improve BUDI Diesel. First, the transfer facility is extended to any eligible Malaysian citizen and is no longer limited to immediate family members.
“Second, registered owners who own more than one diesel vehicle are allowed to transfer the entitlement for each vehicle to a maximum of three vehicles. This takes effect immediately,” he said.
Anwar said the changes were in addition to the earlier decision to raise the monthly diesel subsidy quota for eligible pickup trucks and four-wheel-drive diesel vehicles in Sabah and Sarawak from 300 litres to 400 litres.
He said the government had considered feedback from the public and leaders in Sabah and Sarawak on the implementation of targeted diesel subsidies.
Anwar was speaking at the 2026 Malaysia Day celebration at the Borneo Convention Centre Kuching (BCCK) on Wednesday night.
Under the expanded arrangement, registered owners can transfer the subsidy entitlement for eligible vehicles to Malaysian citizens who meet the relevant requirements and are the actual users of the vehicles.
Owners with multiple private diesel vehicles can transfer entitlements for up to three vehicles to three separate individuals.
The transfer does not involve any change in vehicle ownership.
According to the Finance Ministry, owners who transfer all three eligible vehicle entitlements will retain their personal BUDI95 subsidy enitlement.
Each vehicle's subsidy entitlement can be transferred only once and the transfer is generally irreversible. A recipient can also receive a subsidy transfer from only one registered owner.
Applications can be submitted through the BUDI MADANI portal, at Inland Revenue Board (LHDN) offices or with assistance at participating petrol stations. Applications submitted by the 27th of each month will, subject to verification, take effect from the first day of the following month.
Anwar said the government would continue to refine existing policies to ensure assistance reached those who needed it without undermining efforts to strengthen the country's finances.
He also reiterated the government's commitment to ensuring targeted subsidies reached eligible groups despite pressure from rising global crude oil prices. - September 17, 2026
