Malaysia will roll out the BUDI Madani Diesel subsidy programme nationwide on July 1, 2026, allowing eligible private diesel vehicle owners to buy subsidised diesel at RM2.10 per litre using their MyKad, the government confirmed today [1, 2, 3, 4].
Under the programme, each eligible individual receives a monthly base quota of 200 litres, which can be flexibly used for either subsidised diesel or RON95 petrol. Private owners of diesel vehicles such as pickup trucks and jeeps can apply for an additional 100 litres per month, raising their quota to 300 litres, Finance Minister II Datuk Seri Amir Hamzah Azizan said [5, 6, 7, 8]. He noted this should suffice for 95 percent of diesel users, as data shows most consume less than 300 litres monthly [7].
As of May 31, the BUDI Madani subsidy programme had benefited 14 million Malaysians, distributing 11.1 billion litres of fuel, with government spending of about RM11.2 billion, government figures show [9, 10]. Since the West Asia crisis began, subsidy spending has tripled compared to the same period in 2025.
Fuel prices will be reduced from June 25 to June 30. RON97 and unsubsidised RON95 prices will drop by 25 sen per litre, while diesel in Peninsular Malaysia will fall by 30 sen per litre to RM4.07 per litre. Subsidised fuel prices remain stable, with RON95 at RM1.99 per litre and diesel at RM2.15 per litre in Sabah, Sarawak, and Labuan [2, 3, 4].
River transport operators and genset owners in rural areas will continue receiving subsidised diesel under special schemes involving state government verification, particularly in Sarawak [6, 7]. The government is monitoring conditions closely and may introduce further measures after the full subsidy rollout to ensure supply and fairness [1, 2].
Datuk Seri Amir Hamzah stressed the need to prevent subsidy leakages and redirect savings to eligible Malaysians, saying, "We want to close the gaps on such leakages because every ringgit of subsidy saved means more resources can be channelled to those who truly need it" [1, 6]. He also said individuals could apply for the subsidy as vehicle ownership changes, with no application deadline set [1].
Although the petrol quota under BUDI95 was lowered from 300 litres to 200 litres per month in April due to the crisis, the government sees little urgency to increase it back until oil market conditions stabilise [11]. Amir Hamzah cited usage data from January to May, showing only 0.76 percent consumed more than 200 litres, saying, "Let the system run first and see whether it is effective or not" [5].
The nationwide launch of BUDI Madani Diesel and the temporary fuel price reductions later this week mark the latest efforts to ease fuel costs against a backdrop of improving global oil market conditions [2, 3].
