Budi Diesel Is Live: Here’s Everything You Need to Know About Malaysia’s New Diesel Subsidy
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As of 1 July 2026, Malaysia has a new way of delivering diesel subsidies, and if you drive a diesel vehicle, the way you fill up your tank has changed for good.
The Budi Madani Diesel (Budi Diesel) programme standardises diesel subsidy mechanisms, retail diesel pricing, and subsidy delivery methods nationwide. Instead of blanket subsidies or monthly cash transfers, eligible Malaysians now purchase subsidised diesel at the pump using their MyKad, just like the existing Budi95 system for RON95 petrol.
What is Budi Diesel and how does it work?
Budi Diesel is the Budi95 system with diesel integrated into it. With Budi95, you pay RM1.99 per litre for subsidised RON95. With Budi Diesel, you pay RM2.10 per litre for subsidised B10 diesel. The combined monthly quota for both fuels is 200 litres. Present your MyKad at the pump, and the system automatically verifies your eligibility and tracks your remaining quota.
According to the Ministry of Finance, nearly 90% of drivers in Malaysia consume less than 200 litres of fuel per month, meaning the allocation is expected to be sufficient for most recipients.
Who is eligible for Budi Diesel?
Malaysian citizens with a valid MyKad and driving licence (LMM) who own a privately-owned diesel vehicle with valid road tax (LKM) are eligible to access subsidised B10/B15 diesel at RM2.10 per litre. The scheme covers approximately 700,000 private diesel vehicle owners nationwide.
Importantly, for existing Budi Diesel Individual recipients, the current RM400 monthly cash assistance has been discontinued and replaced automatically with the new subsidy mechanism. No fresh application is required for current recipients.
Do pickup truck and SUV owners get more quota?
Yes, and you need to apply for it. Owners of diesel-powered pickup trucks and SUVs may apply for an additional 100 litres per month through the Budi Madani portal at budimadani.gov.my. Applications may also be made in person at LHDN offices, including at UTCs.
As of 28 June 2026, the Budi Madani portal had already received over 18,000 applications for the additional quota, with over 40,000 transactions recorded in the first two days of early rollout. Finance Minister II Datuk Seri Amir Hamzah Azizan confirmed the early rollout proceeded smoothly.
The government has also expanded Budi Diesel to cover company-owned private pickup trucks and jeeps, taking into account feedback from small traders and users who rely on diesel vehicles for their daily work. Vehicle owners in this category can review and apply through budimadani.gov.my once the application system has been updated.
What if the registered owner isn’t the actual user of the vehicle?
The government has introduced a quota transfer facility for cases where the registered owner of a vehicle is not the actual user. Applications can be made through the Budi Madani portal. Once approved, verification at petrol stations will use the IC number of the designated user. The quota amount remains tied to the vehicle and can only be used by the individual designated under the transfer.
To ease vehicle ownership updates, the government has also introduced a Temporary Incentive Programme for the Exemption of Vehicle Ownership Transfer (THM) Fees for diesel vehicles for three months beginning 1 July, saving vehicle owners up to RM100. JPJ will open service counters on weekends from 4 to 26 July, from 8am to 5pm, at all state JPJ offices and UTC JPJ offices.
With fuel prices shifting, now is a good time to check if your car loan repayments still make sense. Run the numbers with iMoney’s free car loan calculator.
Your Move: 4 Steps to Take Now
- Check your eligibility – Visit budimadani.gov.my to confirm your eligibility status and see your monthly quota balance. Private diesel vehicle owners have been able to check their status via the portal from 22 June 2026.
- Apply for the extra 100 litres – If you own an eligible pickup truck or jip-type SUV, apply for the additional quota via budimadani.gov.my or visit your nearest LHDN office or UTC. There is no stated deadline, but applying early secures your entitlement sooner.
- Update your vehicle ownership if needed – If your vehicle is registered under someone else’s name but you are the actual user, apply for a quota transfer via the portal. Take advantage of the temporary JPJ fee exemption (saving up to RM100) before it expires on 26 July 2026.
- Budget for the change – If you were previously receiving the RM400 Budi Diesel Individual cash transfer, note that this has ended. Your subsidy now comes in the form of the discounted pump price. Factor this into your monthly budget, and if fuel costs are a significant household expense, consider reviewing your car loan and running costs to find other areas to cut back.
For queries, contact the Budi Madani helpline at 1300-88-9595, WhatsApp +603-2631 4595, or email tanya@budimadani.gov.my
