THE MADANI government is stepping up diesel assistance measures in response to sustained pressure on global energy markets, as ongoing conflict in West Asia continues to disrupt petroleum supply chains and drive sharp increases in refined diesel prices, which have reportedly surged to as high as US$250 per barrel, nearly three times pre-conflict levels.
The Ministry of Finance, in a statement of Tuesday, said the adjustments are aimed at easing the burden on citizens while ensuring economic activity and food production remain stable amid persistent international volatility in fuel markets.
Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim said the administration recognises the direct impact of rising fuel costs on the public and is prioritising targeted assistance, particularly for paddy farmers, smallholders, agricultural growers and eligible individual diesel vehicle owners.
“The mission of the MADANI government is to ensure the security of supply of essential goods for the people, following the sharp increase in oil prices and global supply chain disruptions.
“The measures announced today involve additional expenditure, including support for food producers, to ensure the continuity of food supply for the people,” Anwar said.
Under the enhanced package, the government has agreed to strengthen support for paddy farmers by increasing the Paddy Cultivation Incentive (IPKP) for the 2026 planting season from RM160 to RM300 per hectare.
“The increase involves an additional allocation of about RM40 million and is expected to benefit nearly 200,000 rice farmers, some of whom are beginning planting cycles this month.
As an additional measure, the government previously introduced a harvesting incentive of RM50 per hectare per season last year to help offset rising input costs.
Cash assistance under the BUDI Agri-Komoditi and BUDI Diesel Individu schemes will also be raised from RM300 to RM400 per month for April 2026, with payments scheduled for 21 April 2026.
This marks the second increase to the schemes following continued pressure from the fuel crisis.
BUDI Agri-Komoditi is expected to benefit more than 200,000 farmers and smallholders, with additional monthly funding of around RM20 million.
Meanwhile, the BUDI Diesel Individu scheme is expected to support about 150,000 individual diesel vehicle owners in Peninsular Malaysia, with an additional monthly allocation of roughly RM15 million.
The Ministry of Finance is expected to bear around RM7 billion in subsidies for April 2026, including an additional RM75 million allocated for the enhanced diesel assistance measures across the three initiatives.
In a further easing of administrative requirements, the government has also agreed to facilitate diesel purchases for non-vehicle use by relaxing the special permit requirement for purchases exceeding 20 litres.
Owners of agricultural machinery and equipment will be allowed to buy diesel above this limit upon presentation of machinery registration documents. Detailed implementation guidelines will be issued shortly.
The MADANI government, through the National Economic Action Council, will continue to monitor developments in West Asia and assess their impact on Malaysia, and remains prepared to take further measures to support affected groups and maintain economic stability. - April 14, 2026
