NEARLY 200,000 owners of diesel-powered pickup trucks and sport utility vehicles (SUVs) have been approved for an additional 100 litres of subsidised diesel each month under the BUDI MADANI Diesel (BUDI Diesel) programme, with the enhanced allocation taking effect from July 2026.
The increase raises the monthly entitlement for eligible recipients from 200 litres to 300 litres, reflecting the Government's recognition of the higher diesel consumption among owners who rely on their vehicles for business operations, family needs and travel to rural and remote areas.
As of 4 July 2026, more than 174,000 beneficiaries are from Peninsular Malaysia, while over 22,000 recipients are located in Sabah, Sarawak and the Federal Territory of Labuan.
Finance Minister II Datuk Seri Amir Hamzah Azizan said the additional allocation was introduced after considering the practical needs of diesel vehicle owners.
"The Government understands that for pickup truck and SUV owners, these vehicles are not merely used for daily commuting but also to earn a living and support their families. That is why this additional 100-litre allocation has been provided. We hope it will help them better manage their monthly diesel requirements," he said.
The Government has also introduced greater flexibility for families using diesel vehicles registered under another immediate family member.
Eligible BUDI Diesel recipients may now apply to transfer their subsidy entitlement through the official BUDI MADANI portal, subject to prescribed conditions and verification requirements. Alternatively, the actual user of the vehicle may update the ownership records with the Road Transport Department (JPJ).
To facilitate the process, the Government has waived vehicle ownership transfer fees for diesel vehicles for three months beginning 1 July 2026.
Applications for the additional 100-litre allocation and subsidy entitlement transfers can be submitted through the official BUDI MADANI portal, which also provides frequently asked questions regarding the scheme's implementation.
As of 4 July, more than 2,000 applications for subsidy entitlement transfers had been received through the portal.
The BUDI Diesel programme continues to utilise MyKad as the verification mechanism for citizenship and eligibility, ensuring subsidised diesel is reserved exclusively for eligible Malaysian citizens, while non-citizens and ineligible users purchase diesel at the market price.
Since the programme's early access phase commenced on 27 June until 4 July, more than 336,000 subsidised diesel transactions have been recorded, involving the purchase of 12.6 million litres of diesel.
The MADANI Government has borne more than RM23 million in subsidies during the period.
The subsidised diesel was sold at RM2.15 per litre during the early access phase before the full implementation of BUDI Diesel on 1 July, when the subsidised price was reduced to RM2.10 per litre.
"Targeted subsidies are a Government benefit for eligible Malaysians. At the same time, subsidy targeting is essential to ensure subsidised diesel supplies remain secure while preventing abuse by those who are not entitled to receive assistance," Amir said.
He stressed that the objective of BUDI Diesel is not to deny assistance to eligible Malaysians but to ensure Government subsidies are channelled according to genuine need while closing loopholes that have enabled leakages and diesel smuggling, costing the country billions of ringgit annually.
The Ministry of Finance said the MADANI Government will continue monitoring the implementation of BUDI Diesel and reviewing feedback from the public and industry to ensure the targeted subsidy programme remains effective, safeguards subsidised diesel supplies and further curbs leakages. - July 5, 2026
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