The Ministry of Finance (MoF) has approved over 30,000 applications to increase the Budi Madani Diesel (Budi Diesel) quota from 200 to 300 litres per month. This adjustment is aimed at meeting the demands of higher-volume users, as reported by New Straits Times.
According to Second Finance Minister Datuk Seri Amir Hamzah Azizan, the decision to expand the quota was made after considering feedback from small traders, hawkers, and service providers operating in rural areas.
After an inspection on the first day of the Diesel subsidy rollout, Amir Hamzah said, “In the implementation of BUDI Diesel, we understand that the target groups include small traders, hawkers, and those providing services to rural residents whose usage might be higher.”
“Therefore, we opened up avenues for them to apply for a higher quota of up to 300 litres. As of yesterday, more than 30,000 people have applied and received approval through the application provided,” he added.
Amir Hamzah also said the government had introduced several enhancements to the Budi Diesel programme, including allowing quota transfers to immediate family members, such as when a vehicle is registered under a child’s name but used by parents. He added that as of yesterday, more than 1,000 people have applied to transfer their quotas to immediate family members.
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The Budi Diesel programme began on 1 July 2026, introducing a subsidised diesel price of RM2.10 per litre nationwide. Previously, retail subsidised diesel was only available in Sabah and Sarawak at RM2.15 per litre. Eligible commercial vehicles nationwide continued to receive subsidised fuel through the Subsidised Diesel Control System (SKDS) fleet card programme, while other diesel users in Peninsular Malaysia paid the market price of RM4.37 per litre.
Budi Diesel implements the same mechanism as the Budi 95 programme, requiring Malaysians to present their MyKad for verification at the pump to prevent subsidy leakages and fuel smuggling.
Eligible owners of diesel-powered private pick-up trucks and SUVs can apply for the higher quota through the official Budi Madani portal. Applications are assessed based on the programme’s eligibility criteria, with successful applicants receiving a monthly subsidised diesel allocation of up to 300 litres.
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When asked about the government’s ability to sustain subsidies following the decline in global oil prices, Amir Hamzah said the savings generated from reducing subsidy leakages would be returned to the people.
He said the Budi Diesel programme demonstrated how savings from targeted subsidies could be channelled back to consumers, citing the reduction in the subsidised diesel price from RM2.15 per litre to RM2.10 per litre.
“We must understand that the government’s approach is to provide targeted subsidies. With this approach, when we have room to give more, we will find a way. If we take Budi Diesel as an example, when we reduce leakages, part of those savings are returned to the people, and this is among the continuous efforts of the government,” he said.
READ MORE: Government announces nationwide subsidised diesel at RM2.10 per litre beginning July 2026
