Malaysia’s subsidised diesel programme is set to become more affordable from July 1, 2026, with the price of subsidised diesel reduced nationwide to RM2.10 per litre under the BUDI MADANI Diesel (BUDI Diesel) initiative. Eligible Malaysian citizens who own a privately registered diesel vehicle with a valid road tax (LKM), MyKad, and driving licence (LMM) will be able to purchase subsidised B10 or B15 diesel at the new price.
Before the nationwide implementation begins, motorists in Peninsular Malaysia will enjoy a transitional price of RM2.15 per litre from June 27 to June 30, matching the current subsidised diesel price already available in Sabah, Sarawak, and Labuan.
Under the revised scheme, eligible vehicle owners will receive a combined monthly quota of 200 litres, shared between subsidised diesel under BUDI Diesel and subsidised RON 95 petrol through the BUDI95 programme. The subsidy only applies to B10 and B15 diesel, while B7 diesel will continue to be sold at market price, similar to how RON97 petrol remains unsubsidised.
The updated programme also expands access to subsidised diesel by allowing more eligible private diesel vehicle owners to participate, including those who previously did not qualify for BUDI Diesel Individual cash assistance.
In addition, the Ministry of Finance has announced a further expansion of the scheme following feedback from small business owners and diesel vehicle users. The Cabinet has approved extending BUDI Diesel eligibility to company-owned private vehicles registered as pick-up and jeep body types.
According to the ministry, the move is intended to benefit businesses and individuals who rely on diesel-powered pick-up trucks and jeeps for daily operations, particularly in rural and interior areas where such vehicles are commonly used. Eligibility will still be subject to the programme’s application requirements and conditions.
Owners of eligible company-owned vehicles will be able to submit their applications through the official BUDI MADANI portal once the online system has been updated. The government has also confirmed that no application deadline has been set, allowing all eligible diesel vehicle owners sufficient time to register and benefit from the fuel subsidy programme.
