The government has set a basic quota of 200 litres of subsidised diesel at RM2.10 per litre under the Budi Madani Diesel (Budi Diesel) Program for eligible diesel vehicle owners. This measure was implemented after a review of the Budi95 Program with the aim of ensuring that the subsidy is distributed more fairly.
Each vehicle owner will receive a subsidy of 200 litres per month which can be used to purchase either diesel or RON95 depending on their needs. For owners of jeeps or pickups that are commonly used for long journeys or carrying heavy loads, they can apply for an additional 100 litres, bringing the maximum amount to 300 litres per month. However, this implementation remains based on the concept of eligibility.
In this regard, from 1 July 2026, retail diesel prices nationwide will be set according to the market price without subsidy. However, eligible parties can still purchase diesel at a subsidized price of RM2.10 per litre using MyKad subject to certain quotas which can be checked through the official online portal.
At the same time, the government is expanding the implementation of the Subsidized Diesel Control System (SKDS) to Sabah and Sarawak. Through it, transport companies and businesses that use vehicles for daily operations can purchase diesel at a subsidized price of RM2.15 per litre using a fleet card. Meanwhile, existing subsidies for groups such as fishermen, smallholders and public transport operators will also continue to be maintained.
