The Ministry of Finance (MOF) has announced that nearly 200,000 owners of diesel-powered pick-up trucks and jeep-type vehicles have been approved for an additional 100 litres of subsidised diesel per month under the Budi Madani Diesel (Budi Diesel) programme. Beginning this month, their monthly allocation has increased from 200 litres to 300 litres.
The announcement follows the government’s earlier decision to introduce a 200-litre monthly subsidised diesel quota under Budi Diesel, which officially rolled out in Peninsular Malaysia on 27 June before expanding to Sabah, Sarawak, and Labuan on 1 July. The programme allows eligible private owners of diesel pick-up trucks and jeep-type vehicles to purchase subsidised diesel at RM2.10 per litre.
Nearly 200,000 Owners Receive Additional 100-Litre Allocation
According to the MOF, the increased allocation has been approved for more than 174,000 recipients in Peninsular Malaysia and over 22,000 recipients across Sabah, Sarawak, and Labuan as of 4 July. The ministry said the decision reflects the higher diesel consumption needs of pick-up and jeep owners, particularly those who use their vehicles for small and medium-sized businesses or frequently travel to rural and remote areas.
Finance Minister II Datuk Seri Amir Hamzah Azizan said the additional allocation would help eligible vehicle owners better manage their monthly fuel needs. He added that the government recognises these vehicles are often used not only for daily commuting, but also to support livelihoods and family responsibilities.
The minister also revealed that more than 238,000 users have benefited from the Budi Diesel programme since its implementation. Between the programme’s early access phase on 27 June and 4 July, more than 336,000 subsidised diesel transactions were recorded, covering approximately 12.6 million litres of diesel and more than RM23 million in government subsidies.
Eligibility Transfer Now Available
It should also be noted that the government has also introduced a transfer facility for Budi Diesel eligibility following feedback from vehicle owners. This is intended for cases where a diesel vehicle is regularly used by an immediate family member or where ownership records have not yet been updated.
Under the new mechanism, the registered Budi Diesel recipient can apply through the Budi Madani portal to transfer subsidy eligibility to an immediate family member, subject to verification and the programme’s terms and conditions. Alternatively, users may update the vehicle’s ownership records with the Road Transport Department (JPJ).
To encourage ownership updates, the government has also waived diesel vehicle ownership transfer fees for three months from 1 July 2026. According to Amir Hamzah, more than 2,000 applications to transfer Budi Diesel eligibility have already been submitted through the portal.
Applications Still Available
Owners of eligible diesel-powered pick-up trucks and jeep-type vehicles who have yet to receive the additional allocation can apply through the Budi Madani portal. The same portal is also used to submit applications for eligibility transfers.
As for the programme’s overall impact, Amir Hamzah said it is still too early to determine how much the government has saved through the targeted subsidy initiative. However, based on feedback from petrol station operators, diesel sales volumes have declined slightly, suggesting that purchases by motorists who are not eligible for subsidised diesel have decreased. The government expects the resulting savings to be redirected towards other public assistance programmes.
(Source: MOF, via Facebook / The Edge Malaysia)