The Ministry of Finance (MOF) announced today that the monthly cash assistance under the BUDI Diesel initiative will be increased from RM200 to RM300 for the interim period.
The adjustment comes as a response to the escalating conflict in West Asia, which has sent Brent crude prices on a volatile trajectory—climbing as high as US$119 per barrel earlier this week. The MOF clarified that the additional RM100 payment is aimed at protecting eligible diesel vehicle owners, including individuals and small-scale farmers (Agri-Komoditi), from the recent spike in pump prices.
Earlier today, Prime Minister Datuk Seri Anwar Ibrahim delivered a special address to the nation, assuring Malaysians that the country’s petroleum supply remains secure.
“Based on our latest review with Petronas, we have verified that our petroleum product supplies are sufficient to last at least until May 2026,” the Prime Minister stated. He emphasized that despite the market’s “triple-fold” price increase compared to neighboring countries, the government has made the difficult decision to keep the subsidised price of RON95 at RM1.99 per litre for the time being.
If the conflict involving Iran persists and global oil prices remain at elevated levels, the government may face a fiscal crossroads in June. As of now, there has been no official indication of whether the subsidy will be “lifted” or “rationalised” once the current reserves are exhausted.
