The government has expanded the BUDI MADANI Diesel (BUDI Diesel) eligibility transfer mechanism, allowing registered owners of private diesel vehicles to transfer their subsidy entitlement to the person who actually uses the vehicle, effective Sept 16, 2026.
Previously, transfers were restricted to immediate family members. Under the revised rules, eligibility may be transferred to any Malaysian citizen with a valid MyKad who qualifies for BUDI MADANI RON95 (BUDI95) and is the actual user of the designated diesel vehicle.
Registered owners with more than one eligible private diesel vehicle may also transfer the monthly entitlement to up to three other individuals, subject to the number of vehicles registered under their name.
Once approved, recipients can use their own MyKad to purchase subsidised fuel based on their respective eligibility. The transfer does not involve a change in vehicle ownership.
For each eligible vehicle, the entitlement may generally be transferred only once, while an individual can receive a transferred entitlement from only one registered vehicle owner.
The Finance Ministry said the changes followed feedback, particularly from diesel vehicle users in Sabah and Sarawak, where arrangements such as “sambung bayar” vehicle transactions and households with multiple diesel vehicles are more common.
Applications under the new arrangement opened on Sept 16 through the BUDI MADANI portal or at Inland Revenue Board (LHDN) offices.
Applications submitted by the 27th of a month will be processed for the entitlement to take effect from the first day of the following month, subject to verification. Applications submitted by Sept 27, for example, can take effect from Oct 1 if approved.
Transfer applications that were still pending as of Sept 15 will be returned, and applicants who still wish to transfer their entitlement must submit a new application under the revised rules.
Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim announced the expansion during the national-level Malaysia Day celebration in Kuching on Sept 16.
