The BUDI MADANI Diesel (BUDI Diesel) programme, which officially kicks off tomorrow (July 1, 2026), will enable eligible private diesel vehicle owners to purchase subsidized fuel at RM2.10 per litre.
The Ministry of Finance (MoF) stated in a press release today that this subsidised price is significantly lower than the current market price, which has been set at RM3.97 per litre for the period from July 1 to July 8, 2026.
The rollout of this new phase marks a substantial expansion compared to the previous BUDI Diesel Individu programme, which only provided monthly cash assistance to around 180,000 recipients in Peninsular Malaysia. Under the updated structure, the scheme is expected to benefit approximately 400,000 private diesel vehicle owners in Peninsular Malaysia, alongside an additional 300,000 owners in Sabah, Sarawak, and the Federal Territory of Labuan.
Beyond private vehicles, an estimated 70,000 commercial and goods transport vehicles in Sabah, Sarawak, and Labuan are now eligible to purchase subsidized diesel at RM2.15 per litre under the Subsidised Diesel Control System (SKDS).
The MADANI Government also announced plans to extend subsidy coverage to company-registered private pickup trucks and jeeps, subject to fulfilling specific criteria.
According to the MoF, the early access phase for eligible private diesel vehicle owners in Peninsular Malaysia has run smoothly since it opened on June 27, 2026. The MyKad verification system integration at petrol stations reported seamless operations without any major technical disruptions.
As of 12:00 PM on June 30, 2026, the system recorded roughly 80,000 transactions involving the purchase of about 3.2 million litres of subsidized diesel. These initial transactions were valued at nearly RM7 million based on a price of RM2.15 per litre.
For owners of eligible pickup trucks and jeeps, the government is offering an additional quota of 100 litres per month via applications on the official BUDI MADANI portal. As of 9:00 AM today, more than 22,000 applications have been received for this supplementary incentive.
To assist actual users who drive diesel vehicles registered under the names of immediate family members, the Road Transport Department (JPJ) will waive vehicle ownership transfer fees for diesel vehicles for three months starting July 1, 2026. This move waives transfer fees that can currently reach up to RM100.
To support these transfer processes, JPJ counters at all State JPJ Offices and State UTC JPJ Offices will open on weekends throughout July, specifically from July 4 to July 26, 2026, between 8:00 AM and 5:00 PM.
