Malaysia launched the early access phase of its expanded Budi Diesel subsidy programme on June 27, 2026, allowing eligible users in Peninsular Malaysia to purchase diesel at RM2.15 per litre via MyKad at petrol stations nationwide [1, 2, 3]. The early access saw around 10,000 participants and nearly 24,000 transactions, distributing about 1 million litres valued at RM2.1 million on its first day [4, 3, 5].
The full nationwide rollout begins July 1 at a fixed subsidised price of RM2.10 per litre. Eligible beneficiaries can purchase up to 200 litres monthly, with an extra 100-litre quota for owners of private pickup trucks and SUVs, increasing the total to 300 litres per month for these vehicles [6, 7, 8, 9].
The scheme now includes company-owned private pickups and SUVs used by small traders and businesses, expanding support beyond individual owners [6, 10, 8, 3]. Vehicle owners may transfer subsidy eligibility to immediate family members who actually use the vehicles, through a verification process on the Budi Madani portal. This allows subsidy benefits to reach the intended users [6, 7, 8, 3]. Users can check eligibility, apply for extra quota, or manage transfers online via the portal [6, 4, 7, 8, 3].
To ease ownership transfer for subsidy qualification, the Road Transport Department (JPJ) will waive vehicle ownership transfer fees up to RM100 from July 1 to 26. JPJ counters will operate on weekends during this period to facilitate processing [6, 8]. Mohd Syazuan, a food truck operator, said the expansion and fee waiver would benefit businesses that rely on company-owned vehicles [8].
The government announced plans to review fixed quota rates under the Subsidised Diesel Control System (SKDS) by August 2026. Adjustments will consider vehicle weight, engine size, fuel consumption, and operation patterns to better align quotas with actual needs [11, 12, 10]. Datuk Armizan Mohd Ali, Domestic Trade and Cost of Living Minister, said the Prime Minister had ordered improvements to address public feedback, cost of living, leakage risk, and fiscal space [11].
Diesel vehicle owners expressed mixed views. Mohammad Fazreen Idham Mohd Jais, a trader, welcomed the RM2.10 price and hoped it would be maintained, while retired serviceman Rashid Razali said the quota was still insufficient for daily drivers, especially for long-distance travel [9].
Operators reported immediate relief from the subsidy. Ai Tean Ai Ching, a durian orchard owner, said, "Today, I purchased RM70 worth of diesel and received 32.56 litres. Without the subsidy, I would have had to pay RM132.51. This assistance has truly eased my financial burden." Hazwan Nik Ismail, a motorist, noted the application was easy to complete online [1].
There are 4,146 petrol stations nationwide ready for the full rollout [10]. The subsidy aims to reduce leakages and ease living costs amid rising fuel prices [6, 8].
