July 5, 2026

New Malaysia Times

Malaysia news & updates

Nearly 200,000 Pick-up, Jeep Owners Get Extra BUDI Diesel Quota

BUDI MADANI Diesel subsidy quota

PUTRAJAYA, July 5 — Nearly 200,000 owners of pick-up trucks and jeep-type diesel vehicles nationwide have been approved for an additional 100 litres of subsidised diesel per month under the BUDI MADANI Diesel (BUDI Diesel) programme. The Finance Ministry (MOF) announced today that the newly approved enhancement effectively increases the monthly subsidised diesel quota for eligible individual recipients from the baseline of 200 litres to 300 litres, beginning this month.

According to official ministry data tracking approvals up to yesterday, the expanded quota applies to more than 174,000 recipients located in Peninsular Malaysia and over 22,000 users distributed across Sabah, Sarawak, and the Federal Territory of Labuan.

“This additional facility is provided taking into account the higher diesel consumption needs among pick-up and jeep owners, including for small and medium business use, as well as travel to rural and remote areas,” the ministry explained in its statement.

Reviewing the initial impact of the policy, Finance Minister II Datuk Seri Amir Hamzah Azizan stated that the expanded allocation is designed to help vehicle owners systematically manage their monthly fuel and operational expenditure. He noted that public uptake of the BUDI Diesel scheme has been highly encouraging, with more than 238,000 active users registering benefits since its initial launch in Peninsular Malaysia on June 27 and its subsequent expansion to East Malaysia on July 1.

“The government understands that for diesel pick-up and jeep owners, these vehicles are not just for daily commuting, but are also used to earn a living and manage family needs,” Amir Hamzah told members of the media after reviewing the structural roll-out of the subsidy programme at a retail petrol station in Kota Kinabalu today.

To address ongoing public feedback concerning vehicles that are currently operated by immediate family members or individuals whose official ownership documentation is still being updated, the government has formally introduced a quota-transfer mechanism. This adjustment ensures that the subvention directly benefits the active driver of the vehicle rather than being strictly limited to the individual whose name appears on the registry.

For private diesel vehicles utilized by close family members who are not the legally registered owners, the primary BUDI Diesel recipient can initiate an application to transfer eligibility via the centralized BUDI MADANI portal, subject to standard verification protocols. Alternatively, secondary users can update the vehicle registration records directly with the Road Transport Department (JPJ). To smooth this transition, the government has implemented a comprehensive three-month exemption on all official ownership transfer fees for diesel vehicles, running from July 1, 2026.

“This flexibility is given to ensure that those who are genuinely eligible and use the vehicle will benefit from the subsidy,” Amir Hamzah stated, adding that the BUDI MADANI digital portal has already processed more than 2,000 individual transfer requests. Eligible owners seeking to claim the additional 100-litre allocation or adjust their registration status can file applications online at www.budimadani.gov.my.

Statistical tracking from the start of the early access phase on June 27 through to July 4 shows that the network has recorded over 336,000 transactions. These transactions account for the purchase of 12.6 million litres of subsidised diesel, translating to an immediate government subsidy expenditure of more than RM23 million.

Amir Hamzah noted that these overall figures encompass diesel purchases transacted at RM2.15 per litre during the early implementation window, as well as sales processed at the fully adjusted subsidised rate of RM2.10 per litre following full implementation on July 1.

Touching on the projected financial savings generated by the subsidy restructuring, the minister stated that it is still too early to provide a definitive audit figure because raw transaction data is undergoing active verification. However, he noted that feedback from local petrol station operators indicates a marginal drop in overall diesel sales volumes, which suggests a contraction in fuel purchases by parties who are no longer eligible for state assistance. Amir Hamzah expressed strong confidence that the tightened enforcement framework will yield long-term savings, allowing the federal government to reallocate public funds into high-impact social assistance programmes.

-NMT